Market check: Stocks open lower, energy under pressure

Yahoo Finance's Jared Blikre breaks down how markets opened on Wednesday.

Video Transcript

JULIE HYMAN: All right, we're going to send it down to Jared Blikre on the floor of the New York Stock Exchange now for more on the opening action, particularly after we got some of those initial comments from Jay Powell. Hey, Jared.

JARED BLIKRE: Hey there. How are you doing, Jule? So let's dive right into this. And I want to take a look at the YFi Interactive. We're looking at a down day in the market. But let's check out the two-day price action here. It seems to be risk-on, risk-off--

[BELL]

--on a day-to-day basis. There goes the SPAC bell, by the way. [INAUDIBLE] American Express global business travel. Regardless, we're still looking at some decent gains, especially for Tesla. That's a standout. Alphabet, that's up over 3%.

Let's check out the sector action. I'm going to put it back on today's only. And we can see communication services the only sector in the green here. Energy really taking it on the chin. I just want to take a little bit of time to talk about energy market. And of course, that goes hand in hand with crude oil. They're really going crazy with that bell now. I'm telling you, you got to pace reality here.

Crude oil down 7%. It was down another 7% to 10% two days ago. And let's take a look at that three-day price action because while everybody's waiting for the Fed to pivot here, guess what? There's another potential bullish catalyst for the markets. That's energy prices retreating. We're seeing breakeven inflation as espoused in the five-year, the 10-year, the 30-year. Those are inflation expectations embedded in the bond market. Those are coming down right now.

So crude oil coming down is a good thing. It is in a technical channel right now. You can basically draw the line here. Maybe it's exceeded it to the downside. But I'll tell you what. You get WTI below $100 per barrel, that's going to start weighing on-- or actually not buoying the psyches of Americans and drivers. And finally, you've got to see those gas prices tick down. But this could be an important step towards that bullish catalyst, but just the first step.

BRAD SMITH: Jared Blikre, all those extra ringing bells enough to send the Wizard of Oz crazy and asking who rang that bell.

JARED BLIKRE: A bunch of angels got their wings this morning. That's all I know.

BRAD SMITH: There you go. Yahoo Finance's own Jared Blikre down there on the floor of the NYSE. Thanks so much, Jared.