The Dow Jones Industrial Average fell on Monday as global markets grappled with the ongoing US banking crisis. The FDIC and other financial regulators guaranteed all deposits of SVB Financial (SIVB). On Sunday, regulators also took control of Signature Bank (SBNY). Meanwhile, San Francisco First Republic (FRC) collapsed 75% in morning trading, despite receiving additional funding from the Federal Reserve and JP Morgan (JMP). Finally, Charles Schwab (SCHW) plunged 20% amid lingering banking fears.
On the economic front, eyes will be on the consumer price index on Tuesday. The CPI should rise by 0.4%, both overall and excluding food and energy. This would bring the headline CPI inflation rate down to 6% from 6.1% in January, with the core inflation rate declining to 5.5% from 5.6%.
Earnings continue to flow as the season ends this week. Among them are Academy Sports and Outdoors (ASO), Adobe (ADBE), General dollar (DG), fedex (FDX), five below (FIVE), GitLab (GTLB) and Lennar (LEN).
stock market today
drug giant Pfizer (PFE) agreed to pay $43 billion for biotechnology Seen (SGEN). Shares of Pfizer rose 0.3%, while shares of SGEN jumped 15%.
Responsible for Genetic Screening Tools Illuminated (ILMN) jumped more than 11% early on following reports that activist investor Carl Icahn planned to appoint three people to the company’s board.
Leader in electric vehicles You’re here (TSLA) traded down more than 2% on Monday morning after Wolfe Research downgraded the stock to peer performance from outperformance. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were up after the stock market opened.
IBD Ranking Watchlist Stock Palo Alto Networks (PANW) and New relic (NEWR) – as well as Dow Jones stocks Selling power (CRM) – are among the top stocks to watch during the new stock market correction.
Palo Alto is an IBD Leaderboard watchlist stock. New Relic was recently an IBD Stock of the Day. And Salesforce was featured in last week’s Stocks Near A Buy Zone column.
IBD’s latest newsletter, MarketDiem, brings you practical insights for stocks, options and crypto straight to your inbox
Dow Jones Today: Oil Price, Treasury Yields
After the market opened on Monday, the Dow Jones Industrial Average fell 0.2% and the S&P 500 0.4%. The tech-heavy Nasdaq composite erased steep losses in morning action, with Seagen and Illumina leading the index.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.1% and the SPDR S&P 500 ETF (SPY) fell 0.2% early Monday.
The 10-year US Treasury yield fell to 3.69% on Friday. Then on Monday, the 10-year yield plunged to 3.47% in early morning trade as safe-haven trading pushed bonds higher following the SVB’s collapse. The dollar fell, losing ground against the euro and the yen.
Oil prices soared Monday morning after Friday’s brief rebound. West Texas Intermediate futures fell nearly 5% in early trading, trading below $73 a barrel early Monday. Gold and silver also rose strongly as investors searched for solid ground. Gold jumped 1.4% to top $1,892 an ounce. Silver rebounded 3.3%, clearing $21 an ounce.
Stock market correction
On Friday, the stock market sold off sharply as the main stock index ended with big losses. The Dow Jones Industrial Average fell 1.1% and the S&P 500 fell 1.45%. The tech-heavy Nasdaq fell 1.8%.
Friday’s Big Picture column commented: “IBD changed our market outlook to ‘uptrend under pressure’ on Thursday. And after Friday’s selloff, we have further reduced our outlook, to ‘market in correction’. This forces investors to avoid buying stocks altogether and turn to defensive trading, such as taking profits and cutting losses.”
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: Salesforce
Over the past few weeks, Dow Jones leader Salesforce has shown great upward strength after strong fourth quarter results. But those gains have mostly faded amid recent market weakness, and now the stock is back below a 178.94 cup entry with a handle. Still, the stock’s recent strength is reason to watch the software leader in upcoming sessions. CRM stock rose 0.5% on Monday.
4 best growth stocks to buy and watch in the market Stock market correction
Top Stocks to Watch: Palo Alto, New Relic
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. On the upside, the stock’s relative strength line hits new highs, with the stock significantly outperforming market averages. PANW stock was trading down 0.8% on Monday morning.
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.
The recent IBD Stock Of The Day, New Relic, is working on a flat basis with a buy point of 80.98 following the February 8 earnings fueled surge. The RS line is holding up for now. NEWR stock fell 1.6% on Monday.
Pass: New Relic provides a suite of cloud-based software products that enables organizations to collect, store and analyze massive amounts of data in real time. Customers gain increased visibility into their enterprise software to help them make data-driven decisions.
Learn to Time the Market with IBD’s ETF Market Strategy
Stocks to watch in the stock market correction
These are the top five 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|
|New relic||(NEW)||80.98||Flat bottom|
|American Express||(AXP)||182.25||Mug with handle|
|Palo Alto Networks||(PANW)||192.94||Mug with handle|
|Selling power||(RCMP)||178.94||Mug with handle|
Source: IBD data as of March 9, 2023
Join IBD experts as they analyze the top stocks of the current market correction on IBD Live
Tesla stock ended a four-day losing streak on Friday, with modest gains. It is trying to find support around its key 50-day line and closed Friday about 55% off its 52-week high.
Tesla shares fell 2% on Monday morning, threatening to erase Friday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares were down 1.4% on Friday, ending with a weekly loss of 1.7%. The stock rose 1.6% on Monday morning.
Microsoft shares extended a losing streak to four sessions, falling 1.5% on Friday. The stock is more than 20% off its 52-week high after recent declines. MSFT stock rose 0.8% on Monday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
YOU MIGHT ALSO LIKE:
Top growth stocks to buy and watch
Learn to Time the Market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, charts, data and coaching in one place
How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks
Dow Jones Futures fall after SVB bailout