First Republic Bank (FRC) was easily the biggest loser for the S&P 500 in the stock market today. Microsoft (MSFT), paycom software (PAYC), Intel (INTC) And Illumina (ILMN) modestly, but came close to the S&P 500’s five biggest losers on Monday.
The S&P 500 rose 0.9% on Monday, above its 200-day moving average.
FRC stock crashes
FRC stock collapsed 47% to 12.18 Monday, hitting a record low as First Republic became the new epicenter in the banking crisis. c. B. Morgan Chase (JPM) advises California-based First Republic on strategic alternatives, including ways to raise capital. But as FRC’s stock continues to drop, selling shares will become permanently diluted.
Early Monday, global agency Standard & Poor’s downgraded the First Republic to junk territory after it downgraded its investment grade rating last week. Moody’s Investors Service downgraded First Republic to junk late Friday.
Last Thursday, FRC stock for the S&P 500 rose 10% after JPMorgan and 10 other banks announced they were depositing $30 billion in the First Republic. But shares fell 33% on Friday.
First Republic stock is down 90.1% so far in March.
Speculation is mounting that the First Republic needs a buyer, but regulators may be reluctant to allow a large bank like JPMorgan to make a major acquisition.
It’s time to market with IBD’s ETF Market Strategy
MSFT stock fell 2.6% to 272.23, pulling back below the 276.76 flat base buy point. This is according to MarketSmith’s analysis. But that’s after the Dow Jones, S&P 500, and Nasdaq component rose 12.4% last week, with five days of gains on higher volume.
Baycom shares fell 2.4 percent to 270.37 on Monday, the lowest close since late June.
INTC stock, another component of the Dow/S&P 500/Nasdaq index, fell 2.2% to 29.16 after reversing lower from the 200-day long slip line on Friday. INTC stock has a bottom base forming below the 200-day moving average, which is not a great sign. However, the movement above the buy point 31.27 may include the 200-day break.
The bigger problem is that Intel earnings and INTC shares lag behind in the chip sector.
ILMN shares lost 2.1%, to 219.77. The maker of DNA sequencing machines has fallen over the past several days since surging 17% on March 13. The upside is that ILMN stock now has a cup-shaped handle on its base. The purchase point of a mug with a handle is 238.65.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
You may also like:
Why the IBD tool simplifies your search for the best stocks
Do you want to get quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today
Tesla vs. BYD: Which burgeoning EV giant is the best one to buy?
“Hipster-friendly troublemaker. Communicator. Organizer. Devoted web lover. Unapologetic problem solver. Reader. Explorer. Travel guru.”
Saudi Arabia cuts its oil production in July, and OPEC extends the agreement until 2024
OPEC + meets to discuss production quotas and a new cut: sources
Twitter’s CEO responsible for content safety resigns after criticism from Elon Musk