Dow Jones Stock Futures: First Republic Bank Crashes 20% On 'Unprecedented' Deposit Flight
Dow Jones futures were little changed ahead of Tuesday's open, with a busy week of earnings results ahead that includes tech titans Google-parent Alphabet (GOOGL), Amazon (AMZN), Facebook-owner Meta Platforms (META) and Microsoft (MSFT). Late Monday, First Republic Bank (FRC) crashed after the company's earnings results late.
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Also late Monday, Cadence Design Systems (CDNS) and First Republic Bank were on the move after earnings. Cadence shares lost nearly 4% in extended trade.
First Republic crashed more than 20% after total deposits cratered 35.5% from last year to $104.5 billion as of March 31, even with the $30 billion injected from the biggest banks. Deposits declined by $72 billion during the quarter, down 40.8% from year-end. FactSet analysts projected deposits dropping to $145 billion.
"With the closure of several banks in March, we experienced unprecedented deposit outflows," commented CFO Neal Holland in a statement.
Early Tuesday, 3M (MMM), Dow (DOW), General Electric (GE), General Motors (GM), Halliburton (HAL), McDonald's (MCD), PepsiCo (PEP), PulteGroup (PHM), Spotify (SPOT), UPS (UPS) and Verizon Communications (VZ) will be key earnings reporters.
Google-parent Alphabet and Microsoft will report late Tuesday. Meta earnings are scheduled for Wednesday after the market close. And Amazon earnings are due late Thursday.
Stock Market Today
On Monday, the Dow Jones Industrial Average rose 0.2%, with Chevron (CVX) one of the big winners. CVX stock rallied 1.4%. The S&P 500 rose 0.1%, while the tech-heavy Nasdaq composite lost 0.3%.
EV leader Tesla traded down 1.5% Monday. Among Dow Jones stocks, Apple (AAPL) rose 0.2% and Microsoft (MSFT) lost 1.4% in today's stock market action.
Crocs (CROX), DraftKings (DKNG), IBD Leaderboard stock Las Vegas Sands (LVS) and IBD SwingTrader stock Lululemon Athletica (LULU) — as well as Dow Jones stocks JPMorgan Chase (JPM), Nike (NKE) and Visa (V) — are among the top stocks to buy and watch with the ongoing market rally.
Nike and DraftKings were featured in this week's Stocks Near A Buy Zone column.
3 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Dow Jones Futures Today: Oil Prices, Treasury Yields
Ahead of Tuesday's opening bell, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were little changed vs. fair value in overnight trading. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The 10-year U.S. Treasury yield fell to 3.51% Monday. Over the last two weeks, the 10-year yield rebounded from its lowest level since mid-September. U.S. oil prices rose Monday, as West Texas Intermediate futures settled just below $79 a barrel.
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What To Do In The Stock Market Rally
Now is an important time to read IBD's The Big Picture column with the stock market trend in a "confirmed uptrend" after continued gains.
Amid Monday's quiet action, the market outlook remains in a confirmed uptrend, which means investors continue to have the green light to buy breakout stocks. IBD's recommended exposure currently sits at 40% to 60%.
Two useful IBD MarketSmith lists to check right now are "Breaking Out Today" and "Near Pivot." The latter shows stocks nearing buy points in bases, and the other flags stocks rising past buy points during the session.
To find more stock ideas, check IBD Stock Lists, like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and should be checked every day.
Learn How To Time The Market With IBD's ETF Market Strategy
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares inched higher Monday, holding steady near a flat base's 144.44 buy point and above the 50-day moving average, according to IBD MarketSmith pattern recognition.
Nike shares rose 1.2% Monday, still above their 50-day line and approaching a cup-with-handle's 127.59 buy point.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. Visa reports fiscal second-quarter results late Tuesday.
Top Stocks To Buy And Watch: Crocs, DraftKings
Crocs shares climbed 2.7% Monday, extending a win streak to seven sessions and finishing extended past a cup base's 143.60 buy point, according to IBD MarketSmith. The 5% buy range went up to 150.78. The company plans to report first-quarter earnings on Thursday.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
DraftKings broke out above a cup base's 21.72 buy point last week, but gave up the entry during Monday's 2.55% drop. The 5% buy zone tops out at 22.81.
Backstory: Boston's DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. Sports-betting prospects look strong, with around 20% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. DraftKings reports Q1 results on May 4.
Las Vegas Sands, Lululemon
IBD Leaderboard stock Las Vegas Sands moved out of the 5% buy range above a 60.40 buy point in a cup with handle during Monday's 1.4% rally. The buy zone topped out at 63.42.
Backstory: Last week, Las Vegas Sands smashed earnings expectations for the first quarter and signaled a "robust recovery" in China's Macau gaming hub. The casino stock posted earnings of 28 cents per share, up from a net loss of 40 cents a year ago. Revenue vaulted nearly 125% to $2.12 billion.
IBD SwingTrader stock Lululemon moved further past a 371.36 entry in a cup with handle, with a near-1% rise Monday.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock slid 1.5% Monday, hitting its lowest level since Jan. 26. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level.
The stock closed Monday 55% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gained 0.2% Monday. They remain solidly above a 157.48 buy point and at the top of the buy range that runs up to 165.35.
Microsoft shares are still above a flat base's 276.86 buy point despite a three-day losing streak, as they dropped 1.4% Monday. The 5% buy area goes up from the buy point to 290.70. Earnings are due out late Tuesday.
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Source: Investor's Business Daily
