Yahoo Finance Live’s Jared Blikre and Emily McCormick recap market performances halfway through November and highlight earnings from unexpected standout Dollar Tree.
Video Transcript
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EMILY MCCORMICK: Welcome back. We’re watching stocks trade mixed this afternoon. The NASDAQ is leading the way lower, off about 0.3% and the S&P 500 and Dow are hugging the flat line. Now, Jared, you’re standing by on the Yahoo Finance Interactive screen. What do you have your eye on?
JARED BLIKRE: Well, I thought I’d take a step back and kind of paint a big picture view of the market right now. We are heading in, it is November 15th, this is the time of the month seasonally when stocks tend to lift off and drift into the end of the year. They call that at the very end the Santa Claus– I was going to call it wall of worry but it’s just the Santa Claus effect here. The Dow you can see only off about 1%, 1.5% from its record highs. The NASDAQ off let’s see, off about– well, I’m going to call that 1% from its record highs. And then the S&P 500 similarly situated.
Now, when you get to the bond market that’s where we really see the market kind of picking up here. We’ve seen a lot of activity over the last few weeks. We were just talking about this with a number of guests but the five-year basically at some pretty important levels here. And let me put a three-year chart of this and you can see we haven’t been here since the beginning of March 2020 and that would be the very beginning of the pandemic. Now, with the 10-year T-note yield, kind of a similar picture, haven’t taken out these highs from earlier in the year just yet but the 30-year also elevated, up four basis points today.
And we’ve got to take stock of the dollar. We were talking about it with Scott Bauer just a few minutes ago. This is a three-year chart, important to point out that we have liftoff right around this very important level. This would be the neckline. You can call this a double bottom, you could also call it a quasi head and shoulders top, no matter how you slice and dice it, probably have further room to the upside here. It doesn’t mean that we’re necessarily going to go get there overnight because the dollar does tend to do a lot of back and filling but nevertheless, something to keep an eye on as well.
Now, inside the market here we have a mixed picture with respect to the mega-caps, Tesla down 4%, Facebook up 2%, Nvidia down 2.5%. So some of the big leaders there showing some volatility. Let’s take a look at a Facebook chart and this will be going back to the beginning of the year. Here is a year-to-date look, still up 27%. A lot of times when Facebook goes through these stomach-churning bouts of correction, people say it’s dead money but so far picking up a little bit, at least today.
EMILY MCCORMICK: Well, Jared, I know one stock, in particular, you also have your eye on is Dollar Tree. Now, we’re seeing that stock up nearly 14% this afternoon and it sounds like activist investors may be getting into this stock?
JARED BLIKRE: That’s right. The story just crossed my eyeballs, so I’m going to summarize it here. Here you can see on the YFi Interactive, stock really climbing. Most of this movement coming today up 13%, 14%, up about 19% year to date.
And here’s what Bloomberg Intelligence is writing about this particular ploy here. “Activist investor Mantle Ridge could help push Dollar Tree to accelerate margin-enhancing strategies we believe including potential changes at the Family Dollar chain to aid profitable sales growth. This could happen via a greater focus on pricing, on product mix, as well as through increased penetration of private label products.” And let me just put a longer-term view of Dollar Tree, of the dollar stores this has been one of the more depressed ones. You can see very much range-bound over the past five years except breaking out only very recently, Emily.
EMILY MCCORMICK: All right, Yahoo Finance’s, Jared Blikre, thanks for breaking that down for us.
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