Dow Jones Falls As Bank Run Ignites New Worries; First Mass Market EV Is Not Tesla

Stocks fell early Friday afternoon as bank fears resumed after Thursday’s rally. Dow Jones component Microsoft (MSFT) broke out of a flat base with a 276.86 entry. Also in Dow Jones, Apple (AAPL) pared back after a four-day rally.

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The Dow Jones Industrial Average lost over 1% at midday, falling over 400 points. The S&P 500 also declined by more than 1%. The Nasdaq saw a smaller decline of just 1%. The small-cap Russell 2000 index suffered the most, shedding over 2.5% at the lunch hour.

FedEx (FDX) soared nearly 9% after earnings. Warner Brothers (WBD) gained more than 1% after an upgrade.

Nvidia (NVDA) and Advanced Micro Devices (AMD) rose. Baidu (BIDU) gained along with other China stocks. BIDU stock is clearing its 50-day line.

Volume on the NYSE and on the Nasdaq was higher compared to the same time on Thursday.

Bank stocks resumed their slide after yesterday’s hopeful uptick.

A First Republic (FRC) SEC filing revealed the troubled bank held $34 billion in cash before big banks stepped in with a $30 billion rescue. However, the bank also borrowed $109 billion from the Fed and $10 billion from the Federal Home Loan Bank. FRC is also canceling its dividend. Shares fell over 15% in morning trading.

The SPDR regional bank ETF (KRE) lost nearly 5%.

Banks borrowed $12 billion from the Fed’s new rescue program last week. However, they also got a whopping $152.8 billion in emergency short-term loans through the Fed’s  “Discount Window,” topping $111 billion in one-week loans during the 2008 financial crisis.

Crude oil fell to $67 per barrel. Gold and Bitcoin rose. Gold hit a six-week high while digital asset Bitcoin topped August 2022 levels.

The yield on the benchmark 10-year Treasury note dropped 20 basis points to 3.38%.

Market Rally Split; FRC Keeps Diving Late With Fed Due

Stocks Moving Today Outside Dow Jones

FedEx gapped up after third quarter earnings, breaking above a buy point of 217.48. The shipper raised its full-year outlook.

MarketAxess (MKTX) is attempting to break out of a flat base with a 389.67 buy point. The stock was an IBD Stock Of The Day on Tuesday.

Volkswagen (VWAGY) showed plans to debut its first EV for the masses, priced at $26,000. Shares fell 4% at noon.

Tech stock Nvidia added 1% to Thursday’s impressive gain. It rose after Morgan Stanley upgraded the stock from equal-weight to overweight with a raised price target of 304.

Meta Platforms (META) pared back after its recent breakout from a flat base. Shares are in a buy zone. META is on IBD SwingTrader while NVDA is on the Leaderboard.

Also outside Dow Jones, Warner Brothers rose nearly 1% after Wolfe Research raised its rating to outperform. Wells Fargo also gave the stock an overweight rating and a price target of 20.

Shares of PagerDuty (PD) pared back gains after Thursday’s rally. The stock is approaching a buy point of 33.87 in a cup-with-handle base.

Cathie Wood’s stock Coinbase (COIN) jumped 7.8%. Shares have rebounded from their 50-day line.

Please follow VRamakrishnan on Twitter for more news on the stock market today.

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