First Republic Bank (FRC) was the S&P 500’s biggest loss in the stock market today. Microsoft (MSFT), Paycom Software (PAYC), Intel (INTC) and Illumina (ILMN) suffered a modest decline, but rounded out Monday’s five biggest S&P 500 decliners.
X
The S&P 500 index rose 0.9% on Monday, again above its 200-day moving average.
FRC stock failure
FRC shares fell 47% to 12.18 on Monday, hitting record lows as First Republic Bank became the new focus of the crisis. JP Morgan Chase (JPM) is advising California-based First Republic on strategic alternatives, including ways to raise capital. But as FRC shares continue to fall, a share sale is always dilutive.
Earlier on Monday, S&P Global downgraded the First Republic deep into junk territory after abandoning investment grade status last week. Moody’s Investors Service downgraded First Republic to junk late Friday.
Last Thursday, S&P 500 stock FRC rose 10% after JP Morgan and 10 other banks announced they would deposit $30 billion in First Republic. But shares fell 33% on Friday.
First Republic shares have fallen 90.1% so far in March.
Speculation is mounting that First Republic wants a buyer, but regulators may be reluctant to make a major acquisition of a major bank like JP Morgan.
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Share Microsoft
MSFT shares fell 2.6% to 272.23, falling below a flat-base buy point of 276.76. This is according to MarketSmith analysis. But it was the Dow Jones, S&P 500 and Nasdaq components that rose 12.4% last week, with five days of increased volume.
Paycom stock
Paycom shares fell 2.4% to 270.37 on Monday, their lowest close since late June.
Intel stock
INTC stock, another Dow/S&P 500/Nasdaq component, retreated 2.2% to 29.16 on Friday after breaking from its long-term declining 200-day line. INTC shares have formed a bottom below the 200-day moving average, which is not a great sign. But a move above the 31.27 buy point would top the 200-day.
Intel earnings and INTC stock lagging the chip industry is a big issue.
Illumina Stock
ILMN stock rose 2.1% to 219.77. The maker of DNA sequencing machines rose 17% on March 13 but has retreated over the past few days. The ILMN stock now has a handle on the cup-shape bottoming base. The cup-with-handle buy point is 238.65.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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