UK markets close in 8 hours 13 minutes
  • FTSE 100

    7,498.00
    -9.11 (-0.12%)
     
  • FTSE 250

    20,341.27
    +43.27 (+0.21%)
     
  • AIM

    920.71
    +0.93 (+0.10%)
     
  • GBP/EUR

    1.1851
    -0.0006 (-0.05%)
     
  • GBP/USD

    1.2230
    +0.0012 (+0.10%)
     
  • BTC-GBP

    20,079.85
    +1,221.15 (+6.48%)
     
  • CMC Crypto 200

    577.70
    +46.48 (+8.75%)
     
  • S&P 500

    4,210.24
    +87.77 (+2.13%)
     
  • DOW

    33,309.51
    +535.11 (+1.63%)
     
  • CRUDE OIL

    91.72
    -0.21 (-0.23%)
     
  • GOLD FUTURES

    1,801.40
    -12.30 (-0.68%)
     
  • NIKKEI 225

    27,819.33
    -180.63 (-0.65%)
     
  • HANG SENG

    20,016.80
    +405.96 (+2.07%)
     
  • DAX

    13,700.93
    0.00 (0.00%)
     
  • CAC 40

    6,558.63
    +35.19 (+0.54%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Stock futures edge higher after Monday’s drop

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance Live anchors discuss how stocks are performing on Tuesday after Monday’s steady drop.

Video transcript

JULIE HYMAN: Let's start here for the three things that you need to know this morning. You're looking at the global map here. And that's because after the deep, deep selling that we had yesterday in stocks here in the US that wiped off $1.3 trillion worth of value from the S&P 500, we see that selling continues to some degree overnight.

So that's interesting here. We don't necessarily have either a clear trend of a rebound or continued selling. It's really a mixed picture. For example, Tokyo, we saw a decline of 1.3% in the overnight session. Hong Kong was unchanged. And Europe, which initially had been higher, and now, trading lower.

For example, the STOXX 600, the euro STOXX 600, which is a benchmark there, is down for the seventh straight session as we see selling continue in France, in Germany, in the UK, and in Spain. Here in the US, however we are hanging on to some of the early gains and the early rebound that we are seeing here in the futures this morning, even though we are down off the highs of the overnight session. But still indicating a gain of about a half percent in the S&P 500.

Again, got to talk about what we saw in yesterday's session and that nearly 4% decline for the S&P 500 that wiped off all of that value. And it was also a very broad-based decline with only five stocks in the S&P 500 higher on the day yesterday. So watching that very closely and the continued action, the follow-through today or the rebound today and how broad-based that is.

We also continue to watch the 10-year T-Note yield, you can see, at 3:32 touching the highest since 2011 and reflective of the changing perceptions of how aggressive the Federal Reserve is going to be, which we're going to talk much more about in just a moment. By the way, this quarter, we are set to have the biggest coinciding decline in stocks and bonds going back to 1990.

And finally, just quickly want to check on oil prices as well because there's not really any relief here. And even yesterday, even with the declines we've seen yesterday, we're still at $123 a barrel, guys. Sorry, a lot to get through here this morning as we look at this cross asset check. And yeah, there's a little relief, but it doesn't feel like much of a relief.

BRIAN SOZZI: On a happy note, at least it's sunny outside, and, you know, we're one day closer to Friday and hitting that Beach. But Julie, hit me with a VIX index chart. Because I'm watching the VIX-- that is, of course, Wall Street's, as they would say, fear gauge or measure of volatility in the markets. That rose 23% yesterday.

You could see that spike right there. Really, an ugly spike, but, of course, not surprising just given the volatility and the extremes we started to see creep into the markets. Interesting note from Data Track. They're looking for the VIX to hit about 36-- or below past 36 to really indicate a potential washout in markets.

What is a washout in markets? That would suggest all the sellers are out and perhaps we're at some form of tradable bottom. But a VIX at 33 suggests you can continue to see more selling here.

JULIE HYMAN: Yeah, 36 is, like, kind of up there. That's a very bad--

BRIAN SOZZI: That would be from the March--

JULIE HYMAN: Very poorly drawn line, but you get the idea.

BRIAN SOZZI: That would be from the March lows, Data Track is noting, March lows from early this year.

JULIE HYMAN: Yeah, and you're-- and you're also looking at some of the tech stocks, right?

BRIAN SOZZI: Tech stocks, too. Of course, when you see this volatility picking up on the street, you want to look at tech, especially with what you mentioned, Julie, that blow-- blow through in yields. I'm looking at SNAP. And I got to give a shout out to our tech editor. Dan Howley has a story on this on Yahoo Finance now.

Looking at the move in SNAP, it's just been-- it got crushed yesterday, shares of SNAP down about 75% year to date. Now this all comes after a disappointing quarter for SNAP. But still, SNAP is not alone. You've seen a bloodbath in many other high multiple, high beta tech stocks also, just given everything we're seeing in markets.

BRAD SMITH: Well, some of those same names that used to be thrown into the tech sector that got kind of repurposed into the communications services sector, it's really interesting to track kind of this bifurcation that's taking place within there where you have some of the internet and content and entertainment names, particularly, moving in a totally divergent direction as compared to some of the telecom names.

And you think back to where consumers are placing their expenditures right now, it's on things they need at this point in time. And this is exactly what we've heard from some of those internet and communication services names in the content and entertainment side, that they're looking for some of those and anticipating some of those headwinds.

Think Netflix and what they had already signaled in their most recent earnings and how that churn may continue to impact them in the near-term. However, if you look at names like AT&T or a T-Mobile, that's where people still need connectivity at the end of the day, where it's the individuals or whether it's the corporations that still have to roll out these solutions for so many of their employees, their head counts, that they're still moving forward with and understanding exactly where that connectivity still needs to remain intact, especially in a kind of collaborative work environment that spans both virtual and going back to the office.

JULIE HYMAN: I mean, they're effectively utilities--

BRAD SMITH: Right.

JULIE HYMAN: --in this environment, right? And utilities-- it's a double-edged sword when you see rising interest rates. Because telecom companies and traditional power companies tend to carry a lot of debt. And so now, their debt servicing costs are going up. So there's-- you know, it's kind of-- it's like they're seen as defensive, but there are some downsides in this kind of environment as well.

BRIAN SOZZI: If my-- if my cell phone bill goes up anymore, I'm canceling my service. You're gonna-- all going to have to reach me by pigeon, or one of those hotels.

JULIE HYMAN: I don't know, cell phone-- but cell phone service is one of those things that has not gone up to the same degree that we have seen other-- other prices go up for. That's one of the areas where you might not be seeing prices creep up to the same degree.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting