Market check: Nasdaq drifts higher, stocks mixed after heavy selling

Yahoo Finance's Ines Ferré and Julie Hyman break down mixed stocks and how sectors are performing.

Video Transcript

JULIE HYMAN: Yeah, Ines. What are we seeing here?

INES FERRE: Yeah, that's right, Julie. Well, we're taking a look at the NASDAQ that's up 4/10 of a percent. So the NASDAQ, some of the components there catching a bid. And we just want to take a look where we're at. Well, Nvidia, Amazon up almost 2%. Over on the sector action, we are seeing consumer discretionary. Look at that. That is now in the green, consumer staples being one of the laggards. I do want to point out, Julie, some of the Ark components.

JULIE HYMAN: Hmm. All of the Ark components, it looks like.

INES FERRE: Yes. So we're looking at Zoom, Block, Shopify, Coinbase. So today, these stocks are seeing some green. But I also wanted to point out, Julie, what's happening with the retail space, which we've spoken a lot about. So we are watching kind of a mixed picture with some of these retailers. If we put up a three-day chart here, you can see kind of the bloodbath that we've seen here. But we saw yesterday, TJX was in the green.

And I want to show you this guy right here. BJ's Wholesale Club up more than 10% right now. BJ's came out with its quarterly results. They beat. They were able to keep a lid a bit on costs, and also talking about how their business model is so important right now during these inflationary times. But also goes to show you, Julie, what you guys have been talking about this shift with the consumer because BJ's is a bulk discount retailer. It's a smaller rival to Costco, but really, the consumer getting squeezed.

JULIE HYMAN: Yeah, and Costco has held up a little bit better as well. The other name that held up well yesterday that it looks like is continuing to hold up today is TJX. Remember, that company came out with its earnings yesterday. And if you look at the two-day chart for that stock, it looks a lot, lot better than a lot of the other companies within the retail complex, which is really interesting.

If I can just look real quickly, can you flip on back to the sectors to that number one dot. I just am curious here. So as we see the XLY is one of the best performers today, it's really a recovery play, right? Because if we look at the two-day chart, it's still down by 6%. That's really where the heaviest selling occurred yesterday.

But something else I wanted to talk about, Ines, is what we are seeing in the energy complex, because we keep hearing that retail gasoline prices are now above $4 a gallon in every single state, right? And in many states, they're well above $4 a gallon.

INES FERRE: Yeah, that's right, like in California. And Oklahoma and Georgia had been two of the states that had been sort of the holdouts for that $4 a gallon of gasoline, but we are seeing these higher prices. Look, we've talked to energy experts that have said to us, you can expect a little bit of a reprieve perhaps for gas prices, but really for July, August, these are going to be sizzling months. And we are looking right now at WTI that's down more than 1 and 1/2%. Brent crude, that's lower. We've seen a lot of volatility this week.

We know that the US is looking at talking to Venezuela again. That's a sort of a desperate move there because there had been energy sanctions against Venezuela. But we are seeing also a little bit of pressure, downward pressure, because of this talk about a recession of demand going forward. But you're looking at a cap here because you've got China that is easing some of its restrictions. And look, as long as you've got gasoline, oil around $110 a barrel-- right now, it's 107 for WTI, Brent's 108-- you're still going to see these high gas prices.

JULIE HYMAN: Yeah, definitely. And we heard the news this morning that China is going to be buying some of the Russian crude, so perhaps that alleviating some of the pressure in the market and why we're seeing that downdraft. But we're still predicting gasoline prices, to your point, are going to stay high.