Equities swayed and fell early on Friday as banking fears flared up again after Thursday’s rally. Dow Jones component Microsoft (MSFT) broke out of a flat base with an entry of 276.86. Also at Dow Jones, Apple (AAPL) worked on its four-day gain.
The Dow Jones Industrial Average lost 1% in the first hour. The S&P 500 fell 0.9%. The Nasdaq saw a smaller drop of 0.5%, while small-cap Russell 2000 fell more than 1%.
FedEx (FDX) soared after profit. Warner Brothers (WBD) was also a big winner.
Nvidia (NVDA) and Advanced micro devices (AMD) rose. Baidu (BIDU) won along with other Chinese stocks. BIDU stock is clearing its 50-day line.
Volume on the NYSE and Nasdaq was higher compared to the same time on Thursday.
Bank shares fell again after yesterday’s hopeful rebound.
a First Republic (FRC) SEC filing revealed that the troubled bank had $34 billion in cash before major banks stepped in with a $30 billion bailout. However, the bank also borrowed $109 billion from the Fed and $10 billion from the Federal Home Loan Bank. FRC is also scrapping its dividend. Shares fell more than 15% in morning trading.
The SPDR regional bank ETF (KRE) lost more than 4%.
Banks borrowed $12 billion from the Fed’s new rescue program last week. However, they also received a whopping $152.8 billion in short-term emergency loans through the Fed’s “Discount Window,” more than $111 billion, more than one-week loans during the 2008 financial crisis.
Crude oil fell to $66.53 a barrel. Gold and bitcoin rose.
The yield on the benchmark 10-year Treasury bill fell 11 basis points to 3.46%.
Stocks move outside Dow Jones today
FedEx moved up after the third quarter gains and broke above a buy point of 217.48. The shipper raised its outlook for the full year.
MarketAxess (MKTX) broke out of a flat base with a buy point of 389.67.
Volkswagen (VWAGY) showed plans to debut its first EV to the masses, priced at $26,000. Stocks fell in the morning.
Tech stock Nvidia added more than 2% to Thursday’s impressive gains. It rose after Morgan Stanley upgraded the stock from equal weight to overweight with an increased price target of 304.
Meta platforms (META) brought back after the recent breakout from a flat base. Stocks are in a buy zone. META is on IBD SwingTrader while NVDA is on the Leaderboard.
Also outside Dow Jones, Warner Brothers rose more than 2% after Wolfe Research raised its rating to outperform. Wells Fargo also gave the stock an overweight rating and a price target of 20.
The Chinese stock markets rose on Friday.
Together with BIDU, e-commerce giant Ali Baba (BABA) stood up. Chinese EV stocks Xpeng (XPEV) and Byd (BYDDF) also gained ground.
Shares of Pager service (PD) scaled back after Thursday’s rally. The stock is approaching a buy point of 33.87 in a cup-with-handle basis.
Cathie Wood’s stash Coin base (COIN) jumped 7%. Stocks have recovered from their 50-day line.
Please follow Ramakrishnan on Twitter for more news about the fair today.
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