Dow and S&P slump, Tesla shares slide

Yahoo Finance's Jared Blikre examines the market action around the Dow and the S&P, in addition to looking at the retail sector and the EV space.

Video Transcript

BRIAN CHEUNG: Welcome back to Yahoo Finance Live. Again, tensions coming out of Russia and Ukraine weighing on markets, as all of the major indices across the board remain in the red and appear to be steepening their losses, actually, through the session. Let's bring in Yahoo Finance's Jared Blikre, who's got more on the action. And there's also earnings today, so it's a bit of a noisy market. Some stocks actually doing pretty well, but across the board, again, story's still red.

JARED BLIKRE: That's right, and we can hit retail in a minute. Interesting that Macy's had a huge gap up, up about 9%, 10%. Gave almost all of it back. And I'm looking at the indices here hitting session lows. Let's start with the S&P 500. Here we are, just hit that new session low, only minutes ago. And you can see barely positive right after the open, and everything is being sold into. If you put candlestick charts up here or candlesticks, you can see not any really big downdrafts here, just kind of some slow, incremental selling.

And we've been seeing these negative headlines just kind of drip through the market all day. And this is the S&P 500 on a two-month basis. And this is why I'm pretty negative on the technicals. We are just inching down into what could be support. However, with no momentum, there could easily be a big downdraft. I'm thinking if 4,300 goes, probably going to see 4,200 pretty quickly. And I don't have that much confidence that it will hold, but we'll have to see how that shapes out.

And now I want to take a look at the sector action where we are seeing staples-- not staples-- utilities is the only sector in the green, so pretty defensive, followed by health care, financials also the leaders here. But only utilities in the green. Here is retail. XLY is the consumer discretionary S&P 500 sector ETF. That's down 3%. And we can take a look at some of those retail names if I can find my heat map here. And here we go. Here's retail.

So Macy's really had a nice report, kind of knocked it out of the park, and investors just not liking what they're seeing here. Let me put up a one-year chart of M, and you can see, it's been consolidating over the last few months and tried to break to the upside today. Here is a two-month view. And this was sold. So anyone who is holding in here probably protecting that area. So we'll to see if there's another catalyst besides earnings that can get Macy's through that hump.

Also looking at Home Depot, guess what? People aren't spending as much, and so a little bit of a negative outlook there. You can see now down 20% over the last two months. And if you take a look at the-- let's see, a three-year basis here. Haven't seen these price levels going back to at least 2021, so kind of at a big inflection point potentially, but usually we get more selling after these big down days, as we've seen with Facebook and many others this earnings season, Brian.

AKIKO FUJITA: Jared, I'll pick it up here. You haven't mentioned Tesla, down in a big way, down about roughly 6%, but also some of the other EV names declining as well. What happened there?

JARED BLIKRE: Yeah, a lot of these companies do have some tangential, I guess, effectiveness-- or not effectiveness. They would be affected by the Russian sanctions only because there are so many parts with respect to EVs and rare metals, and not the least of which is palladium and platinum. Those are used in the combustion vehicles.

But overall, a lot of those metals that are mined over there in Russia are used in cars. And so we're seeing a lot of these stocks here really painting to the downside. And this is just today. You take a look at what's been happening year-to-date, just some of these names off 30%, 40%, 88%. Just incredible to see some of the downdrafts here.

Now if we take a look, let me get back to our market view. I want to take a look at Tesla here. You can see, down 23% for the year. But in a certain sense, you can make the case that it's simply consolidating after reaching these new record highs last year.

And this is something that Tesla has done many, many times. We saw this here with that big run-up in 2021. This was a painful sell-off, about 50%, all the way from 1,200 down to about 600. And it looks like we're doing-- or that at least, this chart is repeating or at least, rhyming in some way here. So we don't know when the upside comes. But for now, just consolidating still some of those gains, probably the fallout point somewhere around 700 here.

AKIKO FUJITA: Jared Blikre, thanks so much for that roundup.