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Stock market: Energy stocks lead gains, Tesla stock slides

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

Video Transcript

BRAD SMITH: Welcome back to Yahoo Finance Live on this, the first trading session of the fourth quarter, 2022. All right, let's get on over to Jared Blikre in studio here at the YFi Interactive to see how things are kicking off. Jared.

JARED BLIKRE: That's right. We got the Dow leading by a hefty margin here, especially compared to the NASDAQ. Dow up almost 1%, 9/10 of a percent. NASDAQ up 15 basis points. When we see these discrepancies, a lot of times, it's explained by the bond market, not necessarily today. We'll get to that in a second. Here is the VIX. We can see it coming down from earlier highs. This is a two-month chart, so you can see we are still at the upper end of the recent range, meaning volatility is heightened here.

Also, want to show you what's happening to bond volatility. And let's see if I can find the MOVE index. Now this is as of the close Friday, but you can see it came down. And this is despite seeing a lot of that bond volatility melt into all other risk assets last week. And here is the 10-year T-note yield. It is down 12 basis points.

Now, what I said earlier, usually, this would favor the tech sector over value stocks, such as energy and financials. But I think the jolt that we're getting to energy right now from that crude oil news-- and I'll give that in a second as well-- the energy sector is up 4% today, followed by materials. You'd think the dollar is crashing. It is not.

So OPEC+ may be going to cut by as much as a million barrels. That's a decision that's coming forthcoming this week. We'll have to see if anything comes of it, but they have made waves that this may be coming at prior meetings. So would not be a complete surprise. However, 1 million barrels per day is a very large number.

I want to get to the NASDAQ 100 here, and you can see Tesla is a big standout-- we've been talking about that-- the miss on deliveries. Apple and Tesla both kind of looking a little bit sick right here. And these are two very important stocks, arguably two of the most bellwether stocks, if I can use that as an adjective, that we have in the US stock universe.

Now, here is Tesla on a year-to-date basis. You can see we're kind of racing down towards these June, July lows. This was an important base, so we're testing the upper-- actually, we are right in the middle of it right now. So we're probably going to test the lower end. Have to see if that comes in-- what is that? About 210, 220, something in there.

In the meantime, want to take a look at Apple as well. That's up 43 basis points, but it is also heading down to these lows. So these are some make or break points that we are going to watch with these two big leaders in the days and weeks to come, guys.

BRIAN SOZZI: Jared Blikre, thanks so much.