Dow Jones stock futures: First Republic Bank crashes 20% on ‘unprecedented’ deposit ride
Dow Jones futures were little changed before Tuesday’s open, with a busy week of earnings results that included tech titans from Google parent Alphabet (GOOGL), Amazon (AMZN), Facebook owner Meta platforms (META) and Microsoft (MSFT). Late Monday, First Republic Bank (FRC) crashed after the company’s earnings results were late.
X
Also late Monday, Cadence design systems (CDNS) and First Republic Bank were on the move after earnings. Cadence shares lost nearly 4% in extended trading.
First Republic crashed more than 20% after total deposits cratered 35.5% from last year to $104.5 billion as of March 31, even with $30 billion injected from the biggest banks. Deposits fell by $72 billion during the quarter, down 40.8% from the beginning of the year. FactSet analysts projected that deposits would fall to $145 billion.
“With the closure of several banks in March, we experienced unprecedented deposit outflows,” CFO Neal Holland commented in a statement.
Early Tuesday, 3M (MMM), Dow (DOW), General Electric (GE), General Motors (GM), Halliburton (HAL), McDonald’s (MCD), PepsiCo (PEP), PulteGroup (PHM), Spotify (SPOT), UPS (UPS) and Verizon Communications (VZ) will be key revenue reporters.
Google parent Alphabet and Microsoft will report late Tuesday. Meta earnings are scheduled for Wednesday after the market closes. And Amazon earnings are due late Thursday.
The stock market today
On Monday, the Dow Jones Industrial Average rose 0.2%, with Chevron (CVX) one of the big winners. The CVX share rose 1.4 percent. The S&P 500 rose 0.1%, while the tech-heavy Nasdaq composite lost 0.3%.
EV leader Tesla traded down 1.5 percent on Monday. Among Dow Jones stocks, apple ( AAPL ) rose 0.2% and Microsoft (MSFT) lost 1.4% in today’s stock market action.
Crocs (CROX), DraftKings (DKNG), IBD Leaderboard stock Las Vegas Sands (LVS) and IBD SwingTrader stocks Lululemon Athletica (LULU) — as well as Dow Jones stocks JPMorgan Chase (JPM), Nike (OF) and Visa (V) — are among the best stocks to buy and watch with the ongoing market rally.
Nike and DraftKings were featured in this week’s Stocks Near A Buy Zone column.
3 top growth stocks to buy and watch nowra stock market rally
Dow Jones Futures Today: Oil prices, Treasury yields
Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed relative to fair value in overnight trading. Keep in mind that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.
The 10-year US Treasury yield fell to 3.51% on Monday. Over the past two weeks, the 10-year yield has retreated from its lowest level since mid-September. US oil prices rose on Monday, as West Texas Intermediate futures settled just below $79 a barrel.
IBD’s latest newsletter, MarketDiem, brings you actionable ideas for stocks, options and crypto straight to your inbox.
What to do in the stock market rally
Now is an important time to read IBD’s The Big Picture column with the stock market trending in a “confirmed uptrend” after continued gains.
Amid Monday’s quiet action, the market outlook remains in a confirmed uptrend, meaning investors continue to have the green light to buy breakout stocks. IBD’s recommended exposure is currently 40% to 60%.
Two useful IBD MarketSmith lists to check right now are “Breaking Out Today” and “Near Pivot.” The latter shows stocks approaching buy points in bases, and the others flag stocks that rise past buy points during the session.
To find more stock ideas, check IBD stock lists, such as the IBD 50, Big Cap 20 and stocks near a buy zone. These features identify bullish patterns and buy points and should be checked daily.
Learn how to time the market with IBD’s ETF Market Strategy
Dow Jones stocks to buy and watch: JPMorgan, Nike, Visa
JPMorgan shares rose on Monday, holding steady near a flat-base buy point at 144.44 and above the 50-day moving average, according to IBD MarketSmith pattern recognition.
Nike shares rose 1.2% on Monday, still above the 50-day mark and nearing a cup-with-handle buy point of 127.59.
Visa shares remain in buy territory above a buy point at 230.15 cup with handle. The buying range goes up to 241.66. Visa reports financial results for the second quarter late Tuesday.
Top Stocks to Buy and Watch: Crocs, DraftKings
Crocs shares climbed 2.7% Monday, extending a winning streak to seven sessions and finishing extended past a Cupbase buy point of 143.60, according to IBD MarketSmith. The 5% buy range went up to 150.78. The company plans to report results for the first quarter on Thursday.
Background story: Broomfield, Colo.-based Crocs is best known for its rubbery casual shoes. In recent years, the company has expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and trainers. The Crocs brand accounts for around 75% of sales.
DraftKings broke out above a cup base buy point of 21.72 last week, but gave up its entry during Monday’s 2.55% drop. The 5% buy zone tops out at 22.81.
Background story: Boston’s DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. The outlook for sports betting looks strong, with about 20% of US adults saying they bet on sports in some way in the past 12 months, according to a 2022 Pew Research Center survey. DraftKings reports Q1 results May 4th.
Las Vegas Sands, Lululemon
IBD Leaderboard stock Las Vegas Sands moved out of 5% buy territory above a 60.40 buy point in a cup with handles during Monday’s 1.4% rally. The buy zone peaked at 63.42.
Background story: Last week, Las Vegas Sands smashed first-quarter earnings expectations and signaled a “robust recovery” in China’s gaming hub of Macau. The casino stock posted earnings of 28 cents per share, up from a net loss of 40 cents a year ago. Revenue rose nearly 125% to $2.12 billion.
IBD SwingTrader stock Lululemon moved further past a 371.36 entry in a cup-with-handle, up nearly 1% on Monday.
Background story: On March 28, Lululemon raised its 2023 guidance after topping holiday fourth-quarter earnings and revenue estimates, sparking a 12.7% gain on March 29. The yoga apparel and casual wear retailer’s final results for the fourth quarter also exceeded its own preliminary announcement, released in early January.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares fell 1.5% on Monday, hitting their lowest level since January 26. In recent weeks, stocks have triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handles. And they are trading sharply below their 50-day line, a key level.
The stock closed 55% off its 52-week high on Monday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones shares, the Apple share rose 0.2 percent on Monday. They remain solidly above a buy point at 157.48 and at the top of the buy range that goes up to 165.35.
Microsoft shares remain above a flat base of 276.86 buy points despite a three-day losing streak, as they fell 1.4% on Monday. The 5% buy range goes up from the buy point to 290.70. The earnings will be posted late Tuesday.
YOU MIGHT ALSO LIKE:
Top Growth Stocks to Buy and Watch
Learn how to time the market with IBD’s ETF Market Strategy
Find the best long-term investments with long-term IBD managers
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool simplifies the search for top stocks
