Dow Jones drops 200 points on unemployment insurance claims; First Republic crashes 35% on a possible sale

The Dow Jones Industrial Average fell 200 points on Thursday morning on a surprise drop in the Labor Department’s initial weekly unemployment claims. Meanwhile, the regional bank First Republic (FRC) fell 35% after Bloomberg reported that the company was “exploring strategic options, including a sale”.


The SPDR S&P Regional Banking (KRE) ETF fell another 1.3%, to add to Wednesday’s 1.6% loss. Other regional banks were also down, but not as sharply as in previous sessions. western alliance (WAL) fell 7%, while Keycorp (KEY) was down 1.2%.

Further away, Swiss credit (CS), which sparked early stock losses on Wednesday, rebounded 6% after receiving a $53 billion lifeline from the Swiss central bank.

Economic data, income

First-time weekly jobless claims fell to 192,000, well below the expected drop to 205,000 from 211,000 the previous week. Meanwhile, the number of Commerce Department housing starts rose more than expected to 1.450 million in February from 1.309 million in January. Housing permits – a measure of upcoming construction activity – also rose more than expected, to 1.524 million in February from 1.339 million in January.

Finally, the Philadelphia Federal Reserve Manufacturing Index remained in contraction, with a reading of -23.2 for March, up slightly from -24.3 in February.

Overseas, the European Central Bank raised interest rates by half a percentage point, continuing its fight against inflation despite growing concerns about the financial system.

On the earnings side, Academy Sports and Outdoors (ASO), Adobe (ADBE), General dollar (DG) and five below (FIVE) results reported.

Academy soared more than 5% in morning trading, while Adobe jumped 3% early Thursday after beating Wall Street’s sales and profit targets for its fiscal first quarter and guiding higher for the whole year.

Dollar General slid 1.5% after its fourth-quarter results, while Five Below fell 4% after announcing a disappointing full-year outlook on Wednesday night.

stock market today

Leader in electric vehicles You’re here (TSLA) was trading down 0.4% on Thursday morning. Also, tech giants Dow Jones Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.

chip leader Advanced mic Devices (AMD), IBD SwingTrader Stock Metaplatforms (META) and IBD Leaderboard Watchlist Stock Palo Alto Networks (PANW) – as well as Dow Jones stocks Nike (NKE) and Selling power (CRM) – are among the top stocks to watch in the ongoing stock market correction.

Palo Alto is an IBD Leaderboard watchlist stock. AMD featured in Wednesday’s IBD Screen of the Day. And Nike was featured in this week’s Stocks Near A Buy Zone column. Meta is an IBD SwingTrader stock.

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Dow Jones Today: Oil Price, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average was down 0.7% and the S&P 500 was down 0.6%. The Nasdaq composite, which does not track financial data, fell 0.5% in morning stock, with Adobe one of the top performers.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.5% and the SPDR S&P 500 ETF (SPY) fell 0.6% early Thursday.

The 10-year U.S. Treasury yield plunged to 3.49% on Wednesday as investors piled into bonds again as Credit Suisse escalated concerns in the financial sector. On Thursday, the 10-year Treasury yield fell to 3.4% in morning trading.

U.S. oil prices held below $68 a barrel after Wednesday’s heavy losses, as West Texas Intermediate traded at its lowest level since December 2021.

Stock market correction

On Wednesday, the Dow Jones Industrial Average ended the session with a loss of 0.9% while the S&P 500 lost 0.7%. The Nasdaq composite closed nearly flat, backed by Big Tech’s “not a bank” strength. The Russell 2000 Small Cap Index closed the market dropping 1.7%.

Wednesday’s Big Picture column commented: “IBD lowered its outlook to ‘market correcting’ last week in recognition of weak stock prices fueled by the banking crisis. Now is the time to raise funds and avoid falling knives as prices could drop a lot However, it also makes sense to create watchlists of top performers as they could lead higher when the positive catalysts return.

Now is an important time to read IBD’s The Big Picture column amid the renewed stock market correction.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to watch: Nike, Salesforce

Since the Oct. 3 low, Nike shares are up 59% to their recent high at 131.31. Now the stock is consolidating within a flat base that offers a buy point of 131.41, according to IBD MarketSmith pattern recognition. NKE stock was down 1.3% early Thursday.

After recent declines, the stock remains below its 50-day moving average, a key benchmark. A decisive rally would be bullish for the basic construction outlook, sculpting the right side of the pattern. The relative strength line is also holding up well during the rapid stock market correction.

Over the past few weeks, Dow Jones leader Salesforce has shown great upward strength after strong fourth quarter results. Those gains quickly faded in last week’s overall market losses, but the stock is now back above a 178.94 cup entry with a handle this week. Still, the market is in a correction phase, so investors should avoid further buying until the market environment improves. CRM stock rose 0.3% on Thursday.

3 top growth stocks to watch in the Stock market correction

Top stocks to watch: AMD, Meta, Palo Alto

Advanced Micro Devices broke above a buy point of 89.04 on a flat basis on Wednesday’s breakout of 2.55%. The shares closed in the buy range which peaks at 93.49. AMD was featured in Wednesday’s IBD Screen Of The Day column. AMD stock rose 0.1% on Thursday morning.

Pass: In early February, the chipmaker reported stronger-than-expected fourth-quarter data center chip sales. But AMD has tempered this news with soft advice for the current period.

Pass: Like its social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as customers struggle due to macroeconomic concerns, recession fears and rising interest rates. It comes as he spends billions of dollars on a gamble to build the “metaverse”, a virtual reality world that has yet to take root.

Watchlist IBD Leaderboard Palo Alto Networks stock continues to trade quietly in a handful after the stock rose 12.5% ​​on Feb. 22. Stocks remain within striking distance of the 192.94 one-basis buy point. PANW stock traded down 0.6% on Thursday.

Pass: On February 21, the cybersecurity giant announced strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, with an increase 26% of its revenue to $1.7 billion.

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Stocks to watch in the stock market correction

These are four stocks to watch in today’s stock market, including two leaders from the Dow Jones.

Company Name Symbol Correct point of purchase Point of purchase type
Metaplatforms (META) 197.26 Flat bottom
Nike (NKE) 131.41 Flat bottom
Palo Alto Networks (PANW) 192.94 Mug with handle
Selling power (RCMP) 178.94 Mug with handle
Source: IBD data as of March 15, 2023

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Tesla Stock

Tesla stock slipped 1.5% on Wednesday, ending a three-day winning streak. Still, stocks are holding above their major 50-day moving average. Shares closed Wednesday about 53% off their 52-week high.

TSLA stock was down 0.4% on Thursday morning, still looking to rebound from Wednesday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.3% on Wednesday, adding to this week’s rebound from the long-term 200-day line. The AAPL fell 0.8% on Thursday morning.

Microsoft shares are still above their 200-day line after Wednesday’s 1.8% rally. MSFT stock is now showing a new buy point at 276.86, due to the formation of a flat base. The stock is still around 16% off its 52-week high. MSFT stock fell 0.3% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


Top growth stocks to buy and watch

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