Market check: Stocks mixed as investors digest big bank earnings

Yahoo Finance’s Jared Blikre breaks down how markets opened on Thursday.

Video Transcript

JARED BLIKRE: Welcome back. Well, with 25 minutes into the trading day, want to get a check of the markets on the YFi Interactive, where we are seeing a mixed day. The Dow is up about 1/3 of a percent. Russell 2000 about 1/4 of a percent. The S&P 500 and the NASDAQ in the red. And we want to check out what's going on in the bond market. Now here is the 10-year T-- oh, actually, here's the VIX. We'll do that first. It's ticking down to, what, 21 and change right now. You can see the three-day trend or the two-day trend has been down. So that is supportive of equities, or at least, reflecting that.

Also want to get a take on the bond market. You can see the five-year is up six basis points to 2.7%. The 10-year not far behind, 2.75%. And the 30-year, that is up 7 basis points. And you can see there, that is a multi-year high. Now, taking a look inside the market at the sector action, for today, we have industrials and staples. Those are each up about 2/10 of a percent. Looks like utilities not far behind, and energy also in the green. Kind of a lackluster day right now. Consumer discretionary, that is the biggest laggard right now, off about 65 basis points.

Also, the tech sector and communication services off about, what is that, half a percent or so. And we are seeing the mega caps under a little bit of pressure here. Tesla off the most, 2.8%. But again, not seeing any outsized-- really outsized movements here. And let's take a look at some of our leaders here. We see solar energy. That is the TAN ETF. That is up about 6/10 of a percent. But to the downside, we're seeing those Ark components. That fund is down about 2.7%. Cannabis also looking a little bit weak. China stocks, that's KWEB, off about 2%.

So a little bit of weakness here, but looking at the travel sector, we see a lot of green. Coming off of those Delta Airlines earnings yesterday, up 3 and 1/2% today. Royal Caribbean up 2 and 1/2%. And we'd be remiss, Brian, if I didn't take a look at the bank stocks because we had Wells Fargo-- look at this, Wells Fargo down 6%. Let me get a one-year chart. Citigroup also reporting, Goldman Sachs. Any thought of what were-- any thoughts about what we're seeing early on in earnings season specifically with respect to some of these banks, Brian?

BRIAN SOZZI: My winner of the day from the banks, Jared, undoubtedly is, in fact, Morgan Stanley. They are working with Elon Musk on that Twitter debate. And their quarter, by and large, looked to be pretty good on a relative basis. So Morgan Stanley getting it done. But overall, I would say, Jared, disappointing bank earnings season so far. You saw the credit allowances go up year over year, perhaps some weakness in the economy. These companies are-- these executives, famously, Jamie Dimon yesterday, calling out some of this weakness.

And then investment banking-- and we've been talking recently about the complete dry-up in SPAC deals-- we haven't seen much other M&A out there. And you see it in the bank results. Morgan Stanley noted investment banking sales down 37%. Goldman Sachs investment banking revenue down 36%. JPMorgan saw declining investment banking sales yesterday. So it looks to be the deal activity is going to stay slow for the time being.

JARED BLIKRE: Yeah, I think so, and it's really been about the volatility that we had in the first quarter. You can't do as many deals when you have that kind of volatility going on, and especially the IPO market, the SPAC market, just about completely dried up.