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S&P 500 and Nasdaq extend three-quarter losing streak

Markets reporter Jared Blikre joins the Live show to detail the losses seen across markets in 2022.

Video Transcript

INES FERRE: Here's the closing bell for today, Friday.

[BELL]

[APPLAUSE]

SEANA SMITH: And that caps off what has been a brutal month for the market, a very challenging third quarter. All three of the major averages ending the day lower. The Dow off 483 points, S&P off just about 1 and 1/2%, NASDAQ off 1.4%. Let's take a look at some-- a closer look at the quarterly performance. Jared Blikre is here at the big board for us. And Jared, the losses for the quarter at least looking better than what we saw in September.

JARED BLIKRE: Oh, I love your silver lining there.

SEANA SMITH: Yeah, I'm trying to put a positive spin on it. I'm trying on this Friday afternoon.

DAVE BRIGGS: You're really working hard. Touché.

SEANA SMITH: I don't know.

JARED BLIKRE: All right, well, I want to draw everybody's attention to the NASDAQ composite first. This is a six-month view. I guess we could reduce this to three months. Well, the point is, is that we took out these lows from June. And it's kind of a big deal. At the end of a month where you're seriously down, a lot of times, you expect pension funds to come in buying. And that's part of a rebalancing strategy, where they might sell some of their bonds and buy stocks. That didn't happen. It just goes to show you how serious this bearish environment we are in.

Now, a lot of people are saying, let's punt along here. And given the oversold levels, we have come down considerably and somewhat fast from some elevated levels in mid-August. But is it enough? Is this going to be the low? Hard to say here, but Michael Hartnett and his team over at B of A have some interesting thoughts on this. They say be short the market-- that is the S&P 500-- and US stocks, as well as the two-year bond, T-note, into the end of October.

We have a big G7 meeting coming up in the middle of November. And their point is, you take a look at what's happened with FX during the quarter. This is US dollar-based forex and currency. So everything, some of these might be inverted, how you're usually used to looking at them. But the point is, the dollar is first here.

And you take a look at this top line, you have Argentina, you have Norway, you have South Africa, Turkey, Great Britain, Russia, Sweden, Australia, Canada, Japan, Euro-- all of these-- and China-- all of these mixed in. Huge advances here, and you have a mix of developed currencies, as well as developing market currencies.

So back to some of these foreign bank interventions, what we saw with the Bank of England and the Bank of Japan, these were somewhat pusillanimous. We haven't seen any big coordinated action yet. And that's what the team is looking for. So whether or not we bounce from here going to be a bit of a time to see if that can actually happen.

Now, Ines was just going through some of the numbers here. I just want to highlight that for the quarter, we are still seeing some-- we're still seeing some green for consumer discretionary-- that's XLY-- as well as energy. That's green there. More importantly, I would say for the month, look at the outperformers here.

If you want to know what could eventually bounce here, you want to see what's doing better than the S&P 500 for the month of September, that is health care-- even though it's down, still an outperformer-- healthcare, financials, discretionary, and staples. So maybe some of these consumer stocks going to come back. But again, it's going to be a waiting game. And October, a month of crashes, we'll have to see if history repeats itself.

DAVE BRIGGS: Oh, that energy number, negative 10 and 1/2%, I mean, in a month. That is some brutal times. Jared Blikre, good to see you, man. Have a good weekend.

JARED BLIKRE: You, too.