Market check: Stocks open higher, Netflix stock craters, yields rise

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Yahoo Finance’s Jared Blikre breaks down how markets opened on Wednesday.

Video Transcript

BRIAN SOZZI: Welcome back. Yahoo Finance’s Jared Blikre is standing by for us down at the New York Stock Exchange. Jared, not a good start to the session here for Netflix, to say the very least.

JARED BLIKRE: No, it’s not. And we’ll take a look at that stock in a second. I have some market cap stats on them. But first, I’m looking at the sector action today. Staples in the lead. It’s up 1% on the YFi Interactive. Industrials coming in second, then utilities, tech, financials, and materials. That rounds out the top row. To the downside, communication services. Guess who is in there? That, of course, would be Netflix. That’s the only sector in the red, down 2 and 1/2%.

And when we look at the NASDAQ 100 components, we’ve got some standouts here. We got Facebook down about over 2 and 1/2%. But let’s get to Netflix because that stock right now down 30%. That should be, I believe, it’s its worst day ever. You can see year to date– this isn’t even over that long of a period, basically a quarter and a half, a quarter and a half a month. It is down 60%.

Now, if you remember, three months ago, they also had a negative earnings reaction. Now they were down $50 billion in market cap that one day. [INAUDIBLE] calculation’s at 240. We are quickly approaching that number. Again, so we could have two quarters in a row where Netflix loses that amount of money, which is just astonishing, $50 billion in one day. Added up, that’s $100 billion.

So, enough dwelling about Netflix. I do want to take a look at some of our leaders here. And it looks like the SOX– that is the Philly Chip Index– that is the leader for the second day in a row, along with homebuilders. Those two were the leaders yesterday, so continuation on that front.

JULIE HYMAN: Let’s take a look at some other moves and other assets. We were taking a look at the move in yields earlier. It seems like maybe they’re pausing today. Is there a view that maybe the move there in the dollar is overdone?

JARED BLIKRE: Yes, I mean, if we go back to the YFi Interactive, and we look at the technical pattern that Brian Cheung astutely identified as a Mount Kilimanjaro, this is a year to date look. Now, I’m going to dial this back to a three-year look, so we can see what has happened from the pandemic and forward. So this goes back to 2019 pre-pandemic. We are above levels that we’ve seen in three years.

But I just want to point out the technical action here. We are so overextended to the upside. We have reached the upper end of this trend channel, probably due for at least a pause in consolidation. And that would give stocks a little bit of a respite here. Also want to track the US dollar because that is having a big reversal day. Let me just dial this down to a year to date chart. And you can see that big red candle in the upper right. That also has been pressuring certain sectors. So a little bit of relief there today in the US dollar, guys.

JULIE HYMAN: Thank you, Jared.