Yahoo Finance’s Jared Blikre, Myles Udland and Brian Sozzi discuss the latest moves in the market.
Video transcription
MYLES ABROAD: Okay, let’s stay here in the markets as we get things going. We see all three majors have indeed opened up in the green as we get early indications here. Jared Blikre joins us now for a look at how things are going on Monday morning, Jared, who comes from the record highs in the S&P and the Dow on Friday.
JARED BLIKRE: Yes, we have. And it looks like we currently have a strong configuration on the market. The Dow is 3/10 percent ahead. You can see that it is good for a few points. Let’s get an intraday or two day chart here. There we go, 111 for the day.
The S&P 500 and NASDAQ have risen only slightly. Russell 2000 down a bit here. When I look at the NASDAQ 100, I believe it’s going to be a mixed picture. That was what we saw in public. And indeed, our Amazon is down almost 1%. Apple is a quarter percent higher.
Lots of great movers here. NXP is a standout. This is about 7% higher in the beginning here. But let’s look at the sector action. We have industry personnel at the forefront, followed by utilities, staples and communications services. And that’s if a 10-year yield of the T-note comes off a bit, but we have a flattening of the yield curve.
So interesting setup here. Energy is the biggest backlog, it’s about 2/10 percent. So I do not see anything big. We looked at a bit of the travel space, some of the travel names just before the opening. We can see American Airlines, it is initially about 4.5% higher. Royal Caribbean rose 3.5%.
We had to investigate the EV space because we got new information about the titles from Tesla. So Elon Musk is now going to be called Techno – what is it, Tesla’s Technoking. I’m not even sure if I pronounced it correctly. And we also have a new master in Coin, that’s the CFO. Sounds kind of like “Game of Throne” -ish to me. But so far, Tesla has been here in the red for about half a percent.
Must also sign up for Crypto, as Bitcoin reaches a record high of over 50 – above 60,000 and now retreating. You can see the following months here. We got that outbreak last week. And we may reach a new high over the weekend, but it may consolidate, as is often the case. And we got a big car in the crypto country over the weekend. Guys?
BRIAN SOZZI: Jared, what do you see in Apple?
JARED BLIKRE: Appeal? Apple was down – Apple has been in a bear market for some time. And let’s go to a chart here. I can pick it up with the NASDAQ 100. So it is not the lowest, but Apple is one of the big sentiment stocks that you really want to help carry the market. If Apple does not participate in a rally, it will probably be difficult for at least the NASDAQ and especially the NASDAQ 100 to climb to new highs.
But you can see here, we have this negative trend line in which Apple is still stuck. And until it is decisively broken upside down, it is likely to chop and could possibly still decline. I’m definitely going to watch Apple and Tesla this week, Brian.
MYLES ABROAD: You know, Jared, I just think fast up to that point we had a little touch with Mike Antonelli who called out the growth names. As he tries to repeat that growth is not dead. But I mean, it was flat to go down, depending on the exact text, especially the big hood FAANGs for a while.
Because the market is grinding higher and because everyone is excited and we are going to get 10% GDP and all this stuff, as you can see the setup in general, there is perhaps an underestimated amount, I would not say weakness, but a setup it can then become weak if we look at the way the market traded?
JARED BLIKRE: Yes. And you’re talking about growth and the periods that it’s outperforming the market, and it’s just not like that for more than a year or a year or a half this century. And so you have to go back to areas like the Benjamin Graham and also the Warren Buffet areas, like the 1950s and parts of the 1960s, to really get those value games going.
But I have – let’s look at WiFi Interactive here. Here is the year-to-date value, and it has fared better. I think what’s different this time, and the cemetery of history is littered with people who utter the phrase, but what’s a little different at this time, and why we can return to some of the growth area we’ve seen before. , is that we have the fiscal stimulus, for better or worse, a lot of fiscal stimulus along with monetary policy.
I think monetary policy has kept interest rates pretty low for a long time, almost too low. And I know, Myles, you quoted – last week you promoted an article by Joe Weisenthal that I also found quite interesting. You know, you have all these VC fund guys who are so gullible, but maybe they just talked their books out and tried to keep interest rates low.
Because in that environment, growth performs better, and value underperforms. Here is the 10-year return on the T-note, which today is about 1 basis point, but decreases from these highs that we have not seen in 13 months. So I think there is a lot more expansion of the yield curve and much more needs to be done with value with cycles this year, which may be a break from the previous cycle, simply because of this fiscal stimulus we have.
MYLES ABROAD: Yes, and, you know, Jared, that’s one of the things that- that article basically said that when policies are easy, it’s not that value does not work, but that everything that has no value does work. And we are now in a reverse situation. Rates continue to rise, and do not necessarily favor value. It’s just that things that grow just won’t be favorable.
I therefore think that we continue to lead very boring things like energy, materials, industrial industry and finance. And the three of us know that none of those things are sexy, none of those things are interesting, and none of those things are usually funded by guys in Silicon Valley. It will therefore be interesting to see how long this period lasts and how we resolve the tension as it were.
Okay, Jared Blikre with a look at how things open up. Jared, we’ll keep in touch with you throughout today’s coverage.