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S&P 500, Dow Jones move lower after Microsoft guidance disappoints

Yahoo Finance’s Jared Blikre joins the Live show to break down how stocks are moving in early morning trading.

Video transcript

BRAD SMITH: Welcome back to Yahoo Finance Live this morning. Taking a look at the major averages, we are red across the board for the three US major averages. Let's get more on today's tape with Yahoo Finance's Jared Blikre, who is over at the YFi Interactive. Hey, Jared.

JARED BLIKRE: That's right, Brad. One of the charts you showed earlier, which is a three-day week-to-date chart of the NASDAQ, caught my eye because when you showed that chart all around the open, NASDAQ had given back all of the gains and had been at 0. But you can see it's in the green for about a quarter of a point today. Now the S&P 500, very similar situation, just barely green for the week, and the Dow, which has been lagging this year, now leading. It's up about 43 basis points, but nothing to write home about just yet.

I want to draw a longer term chart-- or look at a longer term chart of the S&P 500. Let me make this a line chart. We are just barely breaking through this negative trend line right now. We've got the 200-day moving average. And over the last few days-- and this is a three-day chart again-- we are selling off from what has been a very contentious level, not only in the S&P 500, but also the NASDAQ. 12,000, about 850 points above the current level, very big level here. Let me just show you a two-year chart of the NASDAQ so we can see here, consolidating in this range. 12,000 would point to probably a nice squeeze above current levels. But we don't see that just yet.

And let's take a look at the bond market five-year T-note yield. It's down about two basis points, nothing big going on there. 10-year down, too. And let's take a look at the shortest end of the curve. That is the 13-week T-bill yield. And we can see year-to-date, that has been climbing and very much holding on some of these elevated levels near the highest that we've seen in probably 12, 14 years here.

Here's the sector action today. We got everything in the red. Financials are outperforming if those are still under the weather by about 1/4 of a percent. Tech, as we've been talking about, those Microsoft earnings really weighing on the market, followed by consumer discretionary, utilities, and energy. All of those are underperforming the market right now.

And let's check out the Dow. We can see Microsoft there down 3.4%. Some of the names that we're seeing in green, the more defensive one, Verizon, the telecom company, communication services, UnitedHealth, healthcare, Cisco-- that's kind of a defense stock if you can think of that one tech stock that way. But let me just close here, showing what's happening in the software world. A lot of the cloud companies like TeamViewer, TEAM there, Atlassian down 5%. Snow, that's down 5%. I think we're going to see some more fallout from the Microsoft earnings throughout the day.

BRIAN SOZZI: So true. Jared Blikre, thanks so much.