After two straight bearish reversals off highs, sellers knocked the Dow Jones Industrial Average and other major stock market indexes lower Friday, hurt in part by a sell-off in European banks overnight. Deutsche Bank recovered off lows despite reports that default insurance costs are rising at the German bank.
U.S. banks didn't fare much better as money flowed into bonds once again.
Near midday, the Dow Jones and S&P 500 rallied back close to the flatline, with the Nasdaq composite down 0.3%. Several financial stocks rallied off lows, lifting the iShares Russell 2000 ETF to a modest gain.
The 10-year Treasury yield dropped another 10 basis points to a six-month low at 3.30%. But the yield was well off lows in morning trade. The iShares 20+ Year Treasury Bond ETF showed bullish action, gapping above its 200-day moving average, but TLT backed off highs.
Morgan Stanley, Ameriprise Financial and State Street lagged in the S&P 500, with losses of around 4%.
Block extended losses after Thursday's sell-off, fueled by a short-seller report.
Crypto exchange Coinbase recovered for a modest gain despite a Cowen downgrade to underperform. Shares hit an intraday low of 63.30, down 4%.
Sellers swarmed the crypto stock Thursday after the SEC issued a Wells Notice, indicating that COIN is likely to face charges of securities violations.
In economic news, orders for durable goods unexpectedly fell 1% in February, much lower than estimates for a 1.6% rise. Excluding transportation, orders were flat vs. the +0.3% consensus.
Dow Jones Today
Dow Jones components American Express, Goldman Sachs and JPMorgan Chase were early laggards, booking losses of around 2%.
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Chevron was also under pressure, with WTI crude oil futures down 1% to $69.20 per barrel. Plunging bond yields and falling oil prices are major stock market headwinds as worries grow about a sharper-than-expected slowdown for the U.S. economy.
Outside of the Dow Jones, Regeneron Pharmaceuticals was one of the top gainers in the S&P 500 after shares soared nearly 7% Thursday. Several analysts weighed in with positive comments after a Phase 3 trial showed efficacy for its eczema and asthma treatment. Dupixent may also treat uncontrolled chronic obstructive pulmonary disease (COPD).
BMO Capital maintained an outperform rating and raised REGN's price target to 1,040. Jefferies upgraded shares to buy with a new price target of 925.
Activision-Blizzard surged nearly 7% after a UK regulator softened its stance on the proposed merger with Microsoft. Microsoft first announced plans to acquire ATVI in January 2022 for $68.7 billion.
Baidu outperformed in the MarketSmith Growth 250. It's quickly risen to the top of a seven-week consolidation.
Elf Beauty jumped to an all-time high and remains a bona fide stock market leader.
Market Movers
Several stocks in the IBD 50 were also under pressure, including Super Micro Computer and Mobileye. After three straight all-time closing highs, SMCI stock was down 6% but continues to hold above short-term moving averages. MBLY is still holding support at its 10-week moving average.
Semiconductor stocks also lagged in the IBD 50, with Monolithic Power Systems, Lattice Semiconductor and On Semiconductor down more than 4%.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
