Jared Blikre, Myles Udland and Brian Sozzi of Yahoo Finance discuss the latest moves in the market.
Video transcription
MYLES UDLAND: Okay, let’s stay in the markets here while we get things going. We see that all three majors really opened up on the green as we started our first nominations happening here. Jared Blikre joins us now to take a look at how things are getting ready this Monday morning, Jared, breaking those records at S&P and Dow on Friday.
JARED BLIKRE: Yes we have. And it looks like we have a bullish configuration for the market right now. Dow is in the lead, up 3/10 percent. You can see that this is good for some points. Let’s get an intraday or two-day chart here. There we go, 111 for the day.
S&P 500 and NASDAQ increased slightly. Russell 2000 here a little bit. Looking inside the NASDAQ 100, I believe it will be a mixed picture. That was what we were seeing before the opening. And, in fact, we are seeing Amazon drop by almost 1%. Apple rose a quarter of a percent.
Many great drivers here. NXP is a highlight. This represents an increase of about 7% at the beginning here. But let’s check out the sector’s action. We put the industrial sectors in the lead, followed by public services, basic products and communication services. And this is like the yield on a 10-year T note falling a little bit, but we have a flattening of the yield curve.
So interesting setup here. Energy is the biggest latecomer, down about 2/10 percent. So, not really seeing anything big. We were checking out part of the travel space, some of the travel names just before launch. We can see American Airlines, which increased about 4.5% at the beginning. Royal Caribbean was up 3.5%.
We had to check out the EV space because we got some new information about the titles at Tesla. So Elon Musk will now be called Techno – what is it, Tesla’s Technoking. I’m not even sure if I said it right. And we also have a new Coin master, who is the CFO. It kind of sounds like “Game of Throne” to me. But so far, Tesla in the red by about half a percent here.
In addition, we have to check the cryptography because Bitcoin is breaking a record of more than 50 – above 60,000, now retreating. You can see the last few months here. We had that escape last week. And we can reach new highs over the weekend, but consolidating these movements, as is usually the case. And we had a big change over the weekend in the land of cryptography. Staff?
BRIAN SOZZI: Jared, what are you seeing at Apple?
JARED BLIKRE: Apple? Apple was off – Apple was in a bear market for some time. And let’s go to a chart here. I can pull it off with the NASDAQ 100. So it’s out of those low points, but Apple is one of those great-feeling stocks that you really want to see helping to transport the market. If Apple is not participating in a rally, it will probably be difficult for at least the NASDAQ and especially the NASDAQ 100 to reach new highs.
But you can see here, we have this negative trend line in which Apple is still stuck. And until this is decidedly broken up, it will likely conflict and may fall a little further. I will definitely be watching Apple and Tesla this week, Brian.
MYLES UDLAND: You know, Jared, I think that quickly at that point, we touched on the subject a little bit with Mike Antonelli, who called the names growth. Like, he’s trying to reiterate that growth is not dead. But I mean, it’s been a downward trend, depending on the exact ticker, especially the big-cap FAANGs for a while.
Because the market is growing and because everyone is excited and we are going to get 10% of GDP and all these things, as you see the configuration in a broad way, maybe there is an underestimated amount of, I would not say weakness, but a configuration that can then stay weak, looking at how the market is trading?
JARED BLIKRE: Yes. And you talk about growth and the periods of time that it has outperformed the market, and it hasn’t been like that for long periods for more than a year or a year and a half in this century. And then you have to go back to areas like Benjamin Graham and also the Warren Buffet areas of the 1950s and parts of the 1960s to really put those value moves into action.
But I have – let’s take a look at interactive WiFi here. Here is the accumulated value of the year and it has performed better. I think what is different this time, and the cemetery of history is full of people who say that phrase, but what is a little different at this time and why we can go back to some of the areas of growth that we saw 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 very low, almost too low, for a long time. And I know, Myles, you were quoting– promoting an article by Joe Weisenthal last week that I also found very interesting. You know, you have all these guys from the venture capital fund showing up, kind of like goldbug-ish, but maybe they were just talking about your books, trying to keep interest rates low.
Because in this environment, growth is higher and the value is lower. Here is the yield of the 10-year T notes, with a drop of about 1 basis point today, but coming out of those highs that we didn’t see 13 months ago. So I think there is much more expansion of the yield curve, and there is much more to be done with value, with the cyclicals this year, which may be a break with the previous cycle, simply because of this fiscal stimulus that we have.
MYLES UDLAND: Yes, and, you know Jared, it’s one of those things where– that article was basically saying that when politics is easy, it’s not that value doesn’t work, it’s that everything that isn’t value works. And we are in a somewhat reversed situation now. Rates continue to rise, not necessarily the value has to benefit. It turns out that the things that are growing are not going to be favorable.
I think that’s why we see very boring things like energy, materials, industries and finance continue to lead. And the three of us know, none of this is sexy, none of this is interesting, none of this is usually funded by guys from Silicon Valley. So it would be interesting to see how long that period of time goes and how we resolve this tension, so to speak.
Okay, Jared Blikre, with a look at how things are opening up. Jared, we’ll be in touch with you during today’s coverage.