US OPEN: Mixed moods on Wall Street after strong claims data

• US indices started today's session with declines
• Nasdaq remains stronger than the S&P500 
• First Republic Bank (FRC.US) shares lose more than 30%
• Lower claims reading weighed on market sentiment
• JP Morgan estimates that slower growth in regional bank lending will reduce US GDP by 0.5% to 1%

The three major indexes on Wall Street began today's session with a slight decline. The S&P500 is losing 0.41% against a 0.61% decline on the Dow Jones and 0.11% rise on the Nasdaq..U.S. Treasury Secretary Janet Yellen testifying in the Senate, however, indicated that the U.S. banking system remains healthy, and strong action by regulators showed the government's determination to keep depositors safe. These words, however, failed to fully calm market sentiment. News of a CHF 50 billion liquidity injection from the SNB for Credit Suisse also failed to do so. The U.S. banking sector continues to sell off. Yesterday, BlackRock mutual fund CEO Laurence D. Fink conveyed that he expects a further escalation of the crisis caused by the SVB bankruptcy although it is still too early to predict the consequences. 

• Market sentiment was buoyed by a lower-than-expected reading of unemployment claims, which came in at 192,000 versus 205,000 expectations and 211,000 previously, signaling that the labor market is still tight.
• Surprisingly, building permits rose to 1524k vs. 1335k expectations and 1339k previously. Construction starts totaled 1450k vs. 1310k expected and 1309k previously.
• The Philalelphia Fed index fell to 23.2 against negative expectations of -15 and previous -24.3 signaling improvement in the real estate sector.
• Most sensitive to declines is the S&P500 where more weight is given to companies in the financial sector. The Nasdaq index, where techs are weighing more, is doing much better today.

After a strong claims reading and real estate data, the market is pricing in the absence of a Fed hike on March 22 with a 25.5% probability. A 25bp decision seems most likely. Source: xStation5

The major U.S. banking indkes are still under selling pressure. Regional banks are mainly sold off, but stocks of US Bancorp, Citigroup, Wells Fargo or JP Morgan are also losing. Source: Bloomberg

S&P 500 Index categorized by sector and industry. Size indicates market capitalization. Source: xStation5

US100 is still above SMA200 (red line) which for now is strong support level at 12 300 pt. As long as the benchmark is above this line, the bullish momentum can be maintained. Source: xStation5

Company news: 

Meta Platforms (META.US) shares rose to levels near $200, last seen in June 2022. The company recently decided to lay off 10,000k employees as part of cost-cutting measures. Meta's competitor TikTok executives are discussing the possibility of separating from its parent company, China's ByteDance to help address national security threats. 

Meta Platforms (META.US) share price maintained the bullish momentum caused by recent results that beat expectations. The downtrend correction stopped at the 23.6 yawl of the upward wave started in November, near $170. Currently, the price is trying to reverse the trend, after permanently overcoming the SMA200 (red line) measures resistance at $200 per share. Source: xStation5

First Republic Bank (FRC.US) shares are falling after today's report from the company, which is also considering the option of selling its business outright as part of its strategy.

Adobe (ADBE.US) shares are gaining as the software company raised its full-year profit forecast. Analysts viewed the move positively given the tougher macro environment, but indicated that the Figma deal could be a financial burden for the company. 

Shares of China's Baidu (BIDU.US) are falling as the technology company presented investors with a chatbot similar to ChatGPT but the presentation of its capabilities disappointed investors.

Block Inc (SQ.US) shares are gaining because analysts at Mizuho raised their rating on the digital payments company to BUY from NEUTRAL.