Stock Market Clings Onto Small Gains; More Banks Have A Rough Day

The stock market’s major indexes struggled to stay positive and were flat or lower at midday Thursday. Investor enthusiasm waned from the higher-than-expected initial weekly jobless claims number released earlier today.


The Dow Jones Industrial Average dropped 0.2%. The S&P 500 also fell 0.2%. The Nasdaq composite was nearly flat. The small-cap Russell 2000 fared worse, down 1.2%.

NYSE volume was slightly higher and Nasdaq volume was lower than on Wednesday at the same time.

The S&P 500 was fighting to stay above its 50-day moving average, after two days below that line. The Dow remains well below its 50-day and 21-day lines. The Nasdaq climbed above its 21-day line in early trading.

The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) lifted 0.2%. The Innovator IBD 50 ETF (FFTY) fell 0.8%.

Crude oil advanced 0.3% to $76.85 per barrel. The Energy Select Sector SPDR ETF (XLE) regained 0.4%. It has met resistance at its 50-day line.

Bitcoin futures fell 1.8% to $21,725 after Silvergate Capital (SI) announced it will return deposits and will close its doors. The bank specialized in cryptocurrency and digital assets. Silvergate stock pared losses but still plummeted 17%.

The 10-year U.S. Treasury yield dipped 3 basis points to 3.97%.

European stocks were mostly down, with the German DAX unchanged and the Paris CAC dipping 0.1%. The London FTSE fell 0.6% to close out the trading day.

The initial weekly jobless claims numbers for the week ended March 4 came in at 211,000 vs. the 195,000 consensus, and up from 190,000 in the prior week. The higher number gives investors hope that the jobs market will slow, allowing the Federal Reserve to ease up on its rate hikes.

Eyes will be on Friday’s February employment numbers for more insight into the labor market.

Stock Market Winners: Warehouse Retailer In Buy Zone

BJ’s Wholesale Club (BJ) rose 4.1% and broke out of a cup-with-handle base as shares gapped above a 76.04 buy point. The discount chain reported better-than-expected same-store sales. Shares are in the 5% buy zone reaching 79.84.

Uber Technologies (UBER) reversed course and pulled back 1% on a Bloomberg report the ride hailing company is exploring spinning off its freight logistics division in a sale or initial public offering. The divestiture would allow Uber to focus on its ride-share and food delivery services.

Blue chip industrial stock General Electric (GE) gapped up 6.8% after the company reiterated its 2023 guidance and gave insight into its aviation business at its investor day Wednesday. GE was the S&P 500’s biggest gainer at midday.

Work management platform Asana (ASAN) soared over 22% after reporting better-than-expected Q4 top and bottom lines, and giving positive guidance.

Stock Market: Two Financial Stocks Drop Over 30%

SVB Financial Group (SIVB) got decimated, falling over 42% on news it will make an offering of $1.25 billion in stock and took a $1.8 billion loss on the sale of its securities portfolio. The parent of Silicon Valley Bank is down to its lowest point in nearly three years.

Signature Bank (SBNY) fell 7.4% on the heels of the Silvergate meltdown. Signature has been shedding its digital assets amid the cryptocurrency troubles.

First Republic Bank (FRC) tanked over 13% on a report Wedbush removed it from its Best Ideas list.

The SPDR S&P Bank ETF (KBE) tumbled more than 5% and is testing long-term support around 43.

Genesco (GCO) tumbled over 12% after the apparel chain reported mixed Q4 results and provided full-year profit guidance lower than expected.

MongoDB (MDB) gapped down over 7%. The cloud database firm reported better-than-expected January-ended quarter earnings and sales, but gave lower-than-expected current-quarter revenue guidance late Wednesday. Analysts forecast a drop to 64 cents EPS in the current fiscal year, from 81 cents the previous year.

Etsy (ETSY) gapped down 4.1% after Jefferies downgraded the online marketplace stock to underperform from buy and slashed its price target to 85 from 150. The move sent shares below the 200-day line, but Etsy pared losses.

Chinese e-commerce platform (JD) gapped down over 11% after reporting a slight miss on Q4 revenue, before the opening bell Thursday.

Credit Suisse (CS) dropped 1.9% on news it will postpone its 2022 annual report, after the Securities and Exchange Commission raised questions about the financial company’s restated cash flow statements from 2019 and 2020.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.


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