S&P 500: Crashing Bank Stock, Dow Giant Lead Losers

Bank of the First Republic (FRC) was by far the biggest loser of the S&P 500 in the stock market today. Microsoft (MSFT), Paycom software (PAYC), Intel (INTC) and Illumina (ILMN) fell modestly, but rounded out Monday’s top five S&P 500 fallers.


The S&P 500 index rose 0.9% on Monday, again above its 200-day moving average.

FRC stock crashes

FRC shares crashed 47% to 12.18 on Monday, hitting a record low as First Republic becomes the new epicenter in the banking crisis. JPMorgan Chase (JPM) advises California-based First Republic on strategic alternatives, including ways to raise capital. But as FRC shares continue to fall, a share sale would become increasingly dilutive.

Early Monday, S&P Global First Republic relegated deeper into junk territory after dropping its investment grade status last week. Moody’s Investors Service closed First Republic to junk late Friday.

Last Thursday, the S&P 500 FRC stock soared 10% after JPMorgan and 10 other banks announced they would pour $30 billion into First Republic. But shares fell 33% on Friday.

Shares of First Republic are down 90.1% so far in March.

Speculation is mounting that First Republic needs a buyer, but regulators may be reluctant to let a major bank like JPMorgan make a sizeable acquisition.

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Microsoft stock

MSFT shares fell 2.6% to 272.23, falling back below a buy point of 276.76 with a flat base. This is evident from the analysis of MarketSmith. But that’s after the Dow Jones, S&P 500 and Nasdaq component rose 12.4% last week, with five days of gains in rising volume.

Paycom share

Paycom shares fell 2.4% on Monday to 270.37, the lowest closing price since the end of June.

Intel stock

Shares of INTC, another Dow/S&P 500/Nasdaq component, fell 2.2% to 29.16 after falling from the long-sliding 200-day line on Friday. INTC stocks have a bottom base that has formed below the 200-day moving average, which is not a good sign. But a move above the buy point of 31.27 would mean crossing the 200 day mark.

A bigger problem is that Intel revenue and INTC stock are lagging the chip sector.

Illumina stock

The ILMN share lost 2.1% to 219.77. The maker of DNA sequencing machines has retreated in recent days since it rose 17% on March 13. The upside is that ILMN stocks now have a handle on the bowl-shaped bottom base. The buy point of the cup with handle is 238.65.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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