stock market downturn; Bank closures hit the sector and beyond

The main indexes of the stock market fell in the last hour of trading, to close near the lows of the session, on a tumultuous day on Friday. Investors were shaken by the closing of Silicon Valley Bank, which hit the entire sector.


The Dow Jones Industrial Average fell 1.1%. The S&P 500 fell 1.5%. The Nasdaq Composite fell 1.8%. The small Russell 2000 fared worse, down 2.9%, hurt by the 15% banking component.

Trading volume on the New York Stock Exchange and Nasdaq was higher than it was on Thursday, in raw numbers.

The S&P 500 and Dow found resistance at the 200-day moving average during an earlier rebound attempt today. Both closed below this line. The Nasdaq fell below its 50-day moving average, a day after closing below the 200-day line.

The Invesco QQQ Trust ETF is a highly qualified technology fund on the Nasdaq 100 Index (QQQ) sank 1.4%. The Innovator IBD 50 ETF (fifty) fell 3.2%.

Crude oil advanced 1.1% to $76.52 a barrel. Bitcoin futures fell another 0.8%, to $19,915.

The 10-year US Treasury yield fell 22 basis points to 3.69% as investors fled to riskier assets.

Nonfarm Payrolls in the Labor Department for February grew by 311,000 versus 223,000 in the Econoday forecast. Private salaries grew 265,000 versus the expected 213,000. Manufacturing payrolls fell 4,000 against expectations of a 10,000 increase. Unemployment rate rose to 3.6% vs. 3.4% expected.

Stock market problems: Widening selling of bank stocks

SVB Finance (SIVB) was down over 60% in pre-market trading on top of yesterday’s 60% drop, which brought trading to a halt. The California Department of Financial Protection and Innovation closed the bank on Friday. The parent company of Silicon Valley Bank is facing a liquidity crunch that has raised concerns about the broader banking sector.

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Sonron (Being) up 12.3% in SVB News. The solar and battery storage company is a financial loan client of SVB.

First Republic Bank (FRC) was sold off but pared earlier losses to drop by 14.9%, adding to Thursday’s decline of 16.5%.

signature bank (SBNY) decreased by 22.9% in very large volumes. It added to yesterday’s 12.2% sell-off.

The sale of the bank affected banking ETFs, with the SPDR S&P Regional Banking ETF (KRE) fell 4.4%, on top of Thursday’s drop of 8.1%. SPDR S&P Bank ETF (KBE) decreased by 4.1%.

The sale has spread to other financial statements with a broker Charles Schwab (SCHW) by 11.7%. SPDR Financial Sector Fund (XLF) held up better, down 1.8%.

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Stock Market Movers: Caterpillar is the dog of the daw

Larva (cat) fell 5.8% after UBS downgraded the stock to sell from neutral, saying there were signs of slowing demand for heavy machinery.

And the stocks fell more than the 50-day moving average. The breakout can be interpreted as a sell signal, even though the stock is technically a base. CAT was the biggest loser for the Dow today.

FTI Consulting (FCN) rose by 3.7% and broke out of a volatile 35-week long base, crossing the handle’s buy point of 188.70. Shares jumped on news that FTI is expanding its partnership with legal technology firm Relativity to expand into Australia.

FTI posted a beat to its fourth-quarter earnings and fourth-quarter bottom lines on Feb. 23, lifting its shares by 10.5%. The global company specializes in financial advisory, litigation, economic, technological and strategic consulting.

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DocuSign (DOCU) fell 22.9% after reporting fourth-quarter earnings and news that the digital document company’s chief financial officer was stepping down.

inspiration (ORCL) fell 3.2% after reporting mixed quarterly results for February on the Thursday after the bell. ORCL sank deeper below the 50-day line.

Chinese solar stocks Genco Solar (JKS) fell 12.8% on heavy volume, after reporting a fourth-quarter EPS failure and outperformance on sales. Stocks fell below the 50 day line and spoiled the bottom of the cup that has been forming since January.

gap (GPS) fell 6.1% after reporting worse-than-expected fourth-quarter results, including a loss for the quarter ending in January. The news sent the stock below its 200-day line. The breakout failed at 13.76.

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

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