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Market check: Stocks fall after retail sales miss, mixed bank earnings

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Yahoo Finance's Jared Blikre breaks down how December retail sales, consumer sentiment, and bank earnings are moving markets today.

Video Transcript

ALEXIS CHRISTOFOROUS: Been a long week, Jared.

JARED BLIKRE: Yes, it has. And I think we could use a much-deserved break at the end of the trading day. I want to get to those numbers first. You were talking about the University of Michigan's Consumer Sentiment Number. So that came in, as you said, near a decade low. But it's really the inflation expectations that were catching my eye. One-year inflation expectations are 4.9%.

Now, remember that CPI is greater than that 7%, but still, both of those numbers are greater than the hourly earnings. And those gains, we have not seen anything close to 5%. So University of Michigan 5 to 10-year inflation, looking out. That's 3.1%. That is at odds with the Fed's goal of 2%. So just highlighting that the Fed is really in a pickle here.

Also want to get to those retail sales numbers. The headline number was a big disappointment-- negative 1.9%. So that was a drop. Biggest drop since February of 2021. So last February. But it's also the control group.

So it's kind of like how we talk about CPI and take out the volatile components of food and energy. Similarly, we have a retail sales control group. That was down 3.1%. That's a little bit more concerning.

So we have consumers retrenching. We have unemployment rising. We have inflation out of control, from the Fed's perspective. What are we going to do about it?

Well, let's take a look at the YFi Interactive. We got some charts here. First, I'm looking at the Treasury market. I'm with you, Alexis. Lots of action, there. [? 6 ?] [? basis ?] [? points. ?] Pretty big move for the 10-year. I want to check out a chart here. And from the opening until the current, we've seen a rise in the 10-year today.

Now, here is a one-month chart. Let me actually put this in a two-month chart. And there we see we are inching up to those highs we saw earlier in the week.

Well, I want to get to some heat maps here. And all of the action today, at least to the upside, has been centered in energy. Tech actually was positive-- well, actually, it was positive most of the day. It has flipped to negative.

But inside the energy sector, we're going to take a look at that in about 30 minutes-- or excuse me, an hour and 30 minutes. We're not going to do a deep dive just yet. I want to note that real estate, financials, materials, consumer discretionary-- all of these sectors here are down by more than 1.5%.

And here are those bank numbers that we're looking for. JPMorgan down 6%. Worst earnings reaction since 2011, more than a decade ago. The trading was just horrendous for them. It wasn't horrendous, but it was disappointing from an investor standpoint. Citigroup, similar problem. They're down 2%.

But bucking the trend here is Wells Fargo. And they came up with a [? number ?] [? for a ?] net interest margin of 8%. That is a huge, huge number. And just look at what Wells Fargo has done over the last year. They broke out within the last month, and I believe they're testing record highs as we speak, but not there quite yet.

I want to also look at Chinese stocks. And here we go. We did see some positive movement today. This is a sector we've talked about so much over the last year, and getting beaten down. But we are seeing a little bit of a mixed picture here. So JD.com up 1%. Pinduoduo up 3%. But Yum Brands China down 4%.

And finally, for the tech stocks, they were beaten down earlier. And Ark Innovation Fund-- a lot of its components are still beaten down, here. Draftkings down another 6%. The old Square block, that's down 5%. Spotify down 5%.

Just take a look at what's happened in the first 10 trading days of the year. Some of these stocks knocked off nearly 30%. Just look at Roku there. So sending it back to you guys, but not the best way to end the week.