Market check: Stocks continue to sink going into week of earnings, Fed decision

Yahoo Finance's Jared Bilkre gives an outlook on the market for this week.

Video Transcript

JULIE HYMAN: All right, let's broaden it out and talk about what's going on in the markets today with this selling continuing. Our Jared Blikre is watching the tape and wincing, perhaps, a little bit this morning. I don't know, Jared. Tell us what's going on.

JARED BLIKRE: I'll tell you what, Julie. It's another ugly start to a week. This is week number four in the new year, and it looks like the Dow on the YFi Interactive already off 400 points. And I was just checking out a slightly longer term chart of the Dow. This is a two-month chart. And look at these series of negative red candles here. That is just something you don't see that often, especially not in a market that has gone basically straight up over the last year.

But even the indices, the majors, are suffering quite a bit. Here's the NASDAQ composite. Haven't seen a price this low since June of last year, so basically at a six-month low in the NASDAQ, and the S&P 500 not looking that much better. And then you take a look at what's going on in the VIX. This is a reliable market-- reliable gauge of market volatility here. You see the VIX up to $33. Haven't seen these levels in some time. And it's just kind of par for the course here.

What are we thinking about in terms of the major catalyst? Of course, we've been talking about the Fed. We have some earnings. We got Apple on Thursday. I have to think it's going to be all about the Fed at this point. And the big question is, have we reached peak Fed hawkishness? I think we have. I think Powell is going to deliver a little bit of a dovish surprise on Wednesday. But if he doesn't, these markets could definitely take another leg lower.

The dips this year have not been bought. You take a look at what's been happening in the 10-year, all this bond market volatility. See the 10-year down about two basis points. That has been spilling over into the general markets. And then you take a look at what the NASDAQ 100 has done since the start of the year. That is ugly. We're looking at Amazon down over 15%, Tesla almost there with it. Facebook, Alphabet, Microsoft, Apple each down more than 10%. Nvidia down 23%.

And you take a look at the worst performers this year, it's not Peloton. It's Moderna. That's off nearly 40%. Then Netflix, then Datadog, then Align Tech. You've got to go down the line here all the way to the left to get to Peloton, which is still down a hefty 24%, so really ugly price action.

And we are still looking ahead to earnings. I mentioned Apple this Thursday. We get Amazon, Alphabet, and some of the others next week. But here is the sector action. Here-- energy up over 10%. Had been up more than 5%, but that's the only sector in the green for the year. Here we see Staples is the only sector in the green for today, guys.

JULIE HYMAN: And you were talking about energy just a second ago. This has been an area that's been popular with investors, right, who are looking at the value trade. And speaking of earnings, we got Halliburton this morning, which is raising its dividend. That's not something we've been hearing about too often from big oil.

JARED BLIKRE: Exactly, and that's because they can. They're in a decent financial position to be able to do this. And all of this is predicated on higher oil prices. But let's dig into some of the numbers here. I do have some analysts' commentary about that dividend raise.

Here's Piper Sandler. They recommend the stock with an overweight price target of $34.25, saying the results beat expectations across the board and the dividend increase underscores Halliburton's capacity to accelerate deleveraging and shareholder returns.

And I also have a comment from Cowen. They rate the stock an outperform with a price target of $33, saying completion and production operating income missed Cowen's estimate, and margins declined from the third quarter. We'll be looking for CMP guidance and what kind of margin uplift comes from price increases implemented during the first quarter.

So even Halliburton faces some margin pressures, as is just about every other company on Earth right now. And you can see there's-- here's what the stock has done over the last year. But take a look at the max chart. You're going to see a lot of volatility in here, well off of its highs from about a decade ago, guys.

JULIE HYMAN: Very interesting. Well, it looks like that dividend boost could get some new investors in there this morning. Thanks so much, Jared. Appreciate it.