U.S. markets close in 4 hours 34 minutes
  • S&P 500

    4,687.20
    +95.53 (+2.08%)
     
  • Dow 30

    35,759.81
    +532.78 (+1.51%)
     
  • Nasdaq

    15,657.49
    +432.33 (+2.84%)
     
  • Russell 2000

    2,269.21
    +65.73 (+2.98%)
     
  • Crude Oil

    72.71
    +3.22 (+4.63%)
     
  • Gold

    1,783.80
    +4.30 (+0.24%)
     
  • Silver

    22.45
    +0.19 (+0.86%)
     
  • EUR/USD

    1.1245
    -0.0042 (-0.37%)
     
  • 10-Yr Bond

    1.4550
    +0.0210 (+1.46%)
     
  • GBP/USD

    1.3226
    -0.0035 (-0.26%)
     
  • USD/JPY

    113.6100
    +0.1200 (+0.11%)
     
  • BTC-USD

    51,678.34
    +2,859.96 (+5.86%)
     
  • CMC Crypto 200

    1,329.00
    +7.72 (+0.58%)
     
  • FTSE 100

    7,340.13
    +107.85 (+1.49%)
     
  • Nikkei 225

    28,455.60
    +528.23 (+1.89%)
     
  • 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.

Micron leads semis lower, Chinese stocks plunge, Bitcoin drops below $45K

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

Video Transcript

- So Jared, let's just start with Micron-- not doing so well today. They've got hit with a downgrade. Tell us more.

JARED BLIKRE: Yeah, in general, chip stocks haven't been faring well over the last five sessions or so. Let's go to the YFi Interactive. We will see some dark red there. Right in the center, that is Micron down 7% today. Over the last five days-- down four of those-- down nearly 15%. And this comes from Morgan Stanley downgrading the stock to equal weight from overweight. And they're citing their concerns over the market for their DRAM memory chips, saying DRAM conditions are losing steam. And our inflection signposts suggest caution from here. Lowered their price target to $75 from $105.

Now, let's take a look at Rosenblatt as well, because they're writing the opposite. They say, any weakness in Micron should be bought as concerns over an end to the cycle for DRAM memory chips are, quote, overblown. The cycle will be extended and large. So some debates on Wall Street. But it looks like the investors are selling. And we're seeing the stock to the downside today, guys.

- Jared, tell us about what's going on in Chinese stocks. Obviously, there's the noise of just how they've been doing in US equity markets in the first place. But then, there's also the lockdowns that China put in place over the weekend, which could be clamping down on a lot of the top line growth for some of these big tech companies.

JARED BLIKRE: Yeah. I'll tell you what. Between the new lockdowns and also the existing crackdown on a lot of these big tech firms, it's causing a lot of consternation in their share prices. And if it's not outright war on the capital market for some of these names, I don't know what would be. Compounding that, we did-- and I mentioned this an hour ago, I believe-- we got earnings for iQIYI, which is down 8%, and also Baidu which is down a little bit less than that. And both their revenue outlooks were below consensus.

And in fact, Bloomberg is writing about Baidu right now. And they're saying, that the below consensus sales outlook for the third quarter reflecting a deteriorating environment in China amid the spread of the Delta variant may be prudent, given the risk the pandemic poses to its core ad sales growth. The economic impact of Delta may not be as large as the initial virus wave way back in the first quarter of 2020, but a lack of business visibility amid rising economic risks-- this warrants a conservative stance. And you want to look at the year to dates, because it's not pretty for a lot of these names. Some of these, especially the education names, down 80%-- 90 in the case of TAL Education Group, guys.

- All right Jared. Let's talk crypto right now. I am looking at Bitcoin. It is sinking down about 5% right now. It is below that 45,000 level. Tell us why, and what are you expecting?

JARED BLIKRE: I think it's that infrastructure bill, which is passing into the house now without an amendment, that would rein in some of the onerous definitions of what constitutes a broker for crypto. And then, the tax reporting obligations concurrent, or I guess that would be a tenant within.

Now, 45,000 is a big inflection point here. If we put on a one month chart-- there we go. And I'll switch to candlesticks. We can see, we have hovered above slightly to 46,000. But you take out a longer term context, Bitcoin still at this really, what I would call, the Rubicon. At 45,000, we get some kind of sell off from there. And we could go up to 47 again. I think that would be a major turning point for Bitcoin, and unfortunately, to the downside at that.