Fed spooks stocks, DocuSign pops, meme stock UTime jumps, chip stocks tumble

Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video transcript

KRISTIN MYERS: First, I want to go to Yahoo Finance's Jared Blikre for a look at what is trending today. Jared, I know that we have stocks right now really taking a leg lower. Short-term yields are jumping. Give us more of the details.

JARED BLIKRE: Yeah, kind of an inauspicious conclusion to the week that we're looking at here. And let's go to the Y-Fi interactive and look at some of the charts. The Dow by far the worst underperformer of the day. You can see here on your screen, off about 400 points. Off the lows there.

We'll take a quick look at the intraday price action here. And you can see just hovering around the lows that we created earlier in the morning.

Here's the NASDAQ, doing a little bit better, only down about half a percent. And now here's the S&P 500 down 85 basis points. Again, haven't seen a down 1% day in quite some time. So it's not like the Earth is falling out from under us. But given the fact that we haven't really seen that much volatility recently, it does kind of stand out, right?

And so here we see the VIX. VIX perking up. We are taking a look at this over the last hour. And I said, when we get these rounded bottoms, these tend to coincide with tops in equities. And that doesn't mean that we're going to go down 10% or 20%. It might only be a few percentage points. But nevertheless, that's what tends to happen.

And I just got this note from Almanac Trader which I want to bring up. This has to do with seasonality. And he's talking about triple witching. And in the last hour, I called it quad witching. Well, they removed stock futures, so those don't expire anymore. So it's actually only triple witching. And it's been that way since last year.

Anyway, what I want to note in here is when he's talking about-- here we go. The most factor to note is that the week after triple witching has the worst quarter two drawdown 26 of the past 30 years since 1991. So we could see some weakness next week, just because we do tend to get that seasonality factor. There's not a lot going on, not a lot of news, still digesting those Fed comments.

And by the way, I will say this about Bullard's comments. They are pretty interesting. He tends to change his mind a lot. And he does flip-flop a little. So I would take it with a grain of salt.

I do want to show the 10-year T note yield here. We are seeing a lot of bond market volatility, down another seven basis points. That is a big move. And we did hit a multi-month low. So this is a trend worth watching. And when we see this, guess what, it favors growth stocks. But you know what? Chip stocks aren't doing that well today.

ALEXIS CHRISTOFOUROS: Yeah. I want to ask you about that. I noticed that myself. The Philly Semiconductor Index down more than 2% right now. Is there any news in particular? Or is it just that investors are deciding to take some profits because they've had such a run up lately?

JARED BLIKRE: Yeah. We're seeing some weakness in the capital equipment companies. So this will be Applied Materials, KLA, Lam Research, Brooks Automation. These are the companies that make the fabrication, the stuff that other companies use to make the chips. We are seeing a little bit of sign of life in Nvidia right here. That's at another record high. They have a lot of momentum behind them. I've shown their charts many times today.

So I'll focus on some of the laggards here. Here's Micron, that's down 4 and 1/s percent. We'll take a year to date look because as we've been talking about, chips haven't fared that well necessarily this year, except Nvidia and a couple of others. Here's Intel. That's down 3%. You can see, still holding onto gains for the year but well, well off these highs.

And then I'll take a look at Applied Materials. That's one of those capital equipment companies that I was just talking about, kind of selling off its highs here. But we are seeing signs of life in the software industry.

KRISTIN MYERS: All right. So let's talk about DocuSign now. I see that they got a target raised at Wedbush. Tell us more about that.

JARED BLIKRE: That's right. Dan Ives is writing about DocuSign today, with a new normal and still have a remote workforce on the horizon for the foreseeable future, we believe this backdrop has markedly accelerated Docu's ability to further penetrate existing as new customers, excuse me. Checks indicate that deal flow continues to accelerate into the rest of the year. And Dan Ives holds it with an outperform rating.

And here's that stock. You can see it's up 5% today, really nice breakout from these highs. And I would expect a little bit of momentum here. We might backfill. But we should get some continuation off of this move.

ALEXIS CHRISTOFOUROS: All right. And finally, would love to check of those meme stocks. How are they doing amidst the selloff today? I know retail traders moved a lot of those stocks higher yesterday.

JARED BLIKRE: Yeah, we're not faring that well, in meme stock land. One particular ticker is catching my attention. That's UTime. They are a Chinese maker of mobile phones and accessories. And if we saw by performance, we'll see there in the lead, one of the leaders today, up 7%.

But let's take a look at a year to date chart. This is a company that debuted a couple of months ago, IPOed. They soared 800% in the first two days. Yesterday, they crashed 75%. So you know what that means? The stock's cheap. Got to buy it today if you're into meme stocks, right?

I'm not going to make any further commentary on that strategy. But here, let's take a five-day look and see what's happened to all the meme stocks this week. And you see a lot of red, a lot of red. Some of the standouts, one of the biggest standouts is AMC. That's up 23%. You can see just up against its record highs that it created earlier in the week. And also WISH, that's a stock that kind of perked up recently. But you can still see that well off of those highs that we saw in the original GameStop phenomenon.

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