Market check: Stocks mixed after inflation print, Fed rate hike uncertainty

Yahoo Finance's Jared Blikre discusses how stocks are wavering as investors digest inflation and Fed rate hikes.

Video Transcript

ALEXIS CHRISTOFOROUS: I want to hand things over to Jared Blikre now for a look at what he has got his eye on today. And busy, busy Thursday. What are you watching?

JARED BLIKRE: Yes, that Bullard news just kind of took market participants by a surprise. You can see the Dow is off about 240 points, 2/3 of a percent. The NASDAQ off just a little bit more. The S&P 500-- I'm going to pull up a chart here of the intraday price action-- turned green very briefly, but just for a couple of seconds. And here is that downdraft, about 200 Dow points, a few points on the S&P 500 that we saw there from those comments.

So March, rate hike of 50 basis points definitely on the table. We've spoken with a number of analysts over the last few weeks, and they seem to think it's unlikely. But maybe today changes the game a little bit. And you have to think that this is probably some kind of a trial balloon. Powell's watching to see the market reaction. If it can absorb this, maybe that's indeed on the table.

Here's the 10-year T-note yield. We were just showing that up 10 basis points, 2.03%. Have not seen these levels since 2019. In fact, the middle of 2019, that'd be right in there, somewhere in there. And just marching higher as we speak. And I also want to point out-- and this has to do with what the Fed is or market participants are thinking the Fed is going to do-- Fed's Bullard backs supersized hike. Seeks one full point by July 1. And now markets are now pricing in a 75% chance of a 50 basis point rate hike in March. And that is up 50 percentage points from yesterday.

So here's what was priced into the market yesterday, 25 to 50 basis points. So that would be one 25 basis point rate hike. 76% odds of that. Those have gone down to 25%. And instead, the bets are on that 50 basis rate hike. So we'll have to see how the markets digest this into the close today, but very important to monitor this.

And just take a look at the sector action here. We can see materials, energy and financials. It's value and commodities that are doing well today in the stock market. To the downside, utilities and real estate. Not surprising that they're the biggest losers. They're very interest rate sensitive. Tech, that's also a big loser. Generally, any time you see a big march up in rates, tech's going to suffer. And then we get staples, consumer staples is underperforming. That's probably because of earnings.

Now I just want to show the NASDAQ 100 heatmap, a lot of red here. We saw some green briefly a couple of hours ago, but no more. Apple is down 1%, Amazon almost right there with it. Microsoft off 2%. And I want to take a look at some of our leaders. We were seeing a lot more green this morning, but now we're seeing the cannabis-- that's MJ-- IPOs, ARK Invest, gambling, the-- excuse me-- regional banks, and it goes on. But those are the marginal leaders here today. We've seen some interest pick up in some of these beat down sectors, but any gains being pared right now.

And then I do want to take a look at the transports as well. And we can see Delta Airlines, United, each up 2%. So the airlines are not doing too bad, but we are seeing some red in the transports as well. I do want to take a look here and see if-- I just got a redesign of this space, so I'm looking for my heat maps here. Unfortunately-- there we go. Here's mobility. So I was looking for those Uber earnings. Uber, a little bit of a disappointment there. They did halt the stock because they announced that they're going to be EBITDA profitable by the end of next year. Didi surging here, you can see that stock up 11%. But DoorDash, Lyft down 5% and 3% respectively, guys.

KARINA MITCHELL: OK, Jared Blikre, thank you so much. We'll see you a little bit later on this--