Dow Jones pars some losses as banking fears rekindle; First Republic gets slammed with unwanted rating| Investor’s Business Daily

Indices rebounded sharply from session lows in late trade on Wednesday but remained lower. The Dow Jones Industrial Average pared its loss to 1% – down 320 points. Swiss banking giant Swiss credit (CS) fell as it struggled to stay afloat while in the US First Republic (FRC) received a poor rating.

Among Dow Jones stocks, Microsoft (MSFT) is on track to rise for a third day in a row. Previously, the software giant made an AI tool available on Azure OpenAI.

Amgen (AMGN) and Merck (MRK) increased, along with Walgreens (WBA) and Walmart (WMT).

The S&P 500 was also off session lows, down a little less than 1% at 3 p.m. ET. Steel dynamics (STLD) sold off and fell below its 50-day line. According to reports, the steel producer expects lower profits in the 1st quarter.

The Nasdaq erased most of the losses and was nearly flat on the hour. Tech stocks gave the index some help. Google parent Alphabet (GOOGL) rose over 2%. Netflix (NFLX) rose 3 percent. Both stocks were close to the day’s highs.

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

Crude oil plunged 5.2% to $67.61 a barrel. barrel. Oil giants Halliburton (HAL) and SLB ( SLB ) fell more than 8% as other energy stocks fell.

The yield on the 10-year government bond fell 18 basis points to 3.45%. The price of gold rose while Bitcoin fell.

Bank run contagion was restarted on Wednesday. Credit Suisse shares fell after its largest investor, Saudi National Bank, said it would not make further investments in the Swiss bank. It reverses earlier plans last year for a possible investment of up to 1.5 billion Swiss francs.


First Republic (FRC) was sharply downgraded to junk by S&P Global Ratings due to concerns that customers are pulling their money. It’s a four-level slash from A- to BB+, according to the Wall Street Journal. The new rating places the stock squarely in speculative territory. Shares plunged.

Elsewhere, shares of Charles Schwab (SCHW) rose 5% on strong volume after last week’s heavy sell-off. Chief executive Walt Bettinger said the brokerage was not in dire straits and did not need to appear in a rush to raise money to stay afloat. Western Alliance Bancorp (WAL) and Metropolitan Bank (MCB) was among regional banks that bounced back from heavy losses.

Tech Stocks Outside the Dow Jones: AMD Tops Buy Point

Advanced micro-devices (AMD) is breaking out of a flat base and rising slightly above an 89.04 entry. Volume is running 28% above average.

Shares of Facebook parent Meta platforms (META) rallied again after its massive 7% gain on Tuesday. The IBD Leaderboard stock is building a flat base with a 197.26 entry. Also on the Leaderboard, Nvidia (NVDA) turned higher.

Stocks are moving today

AerCap (AER) fell below its 200-day mark. The aircraft leasing company dipped below its 50-day line March 8 and is working on a six-day losing streak.

Shares of fertilizer producer Bunge (BG) fell 7%, reversing gains from Tuesday. Shares rose 14% Tuesday on news that Corteva (CTVA) and Chevron (CVX) had partnered with Bunge for plant-based oil products.

In economic data, wholesale prices rose less in February compared to January. Except for food and energy, they were unchanged. The producer price index fell 0.1% in February and rose 4.6% for the year. US retail sales also fell 0.4% in February, a sharper drop than the 0.3% outlook.

Please follow Ramakrishnan on Twitter for more stock market news today.


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