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Chip stocks fall, cruise stocks weigh on travel sector, Peloton stock touches new low

Yahoo Finance's Ines Ferre joins the Live show to break down how stocks are moving in midday trading.

Video transcript

- Well, joining us now with some market movers on this Wednesday morning is Yahoo Finance's Ines Ferré. And I already see it's red.

INES FERRE: It is red. The semis are red. We've got a mixed market right now. But I do want to point out three areas of the market. First off, with the semis. So we're seeing some weakness with the semis. Part of this has to do with the B of A note, a cautionary note about semiconductors, saying that every three to four years, we see a semi downturn.

And the analysts there saying that we could be due for one. He sees some downward pressure on demand happening in the second half of this year and in 2023 with some downgrades that he has on Skyworks Solutions and Texas Instruments. So we are seeing weakness there.

We're also seeing some weakness in the travel sector, particularly when we talk about the cruise liners. And part of this has to do with that Carnival call from Morgan Stanley, with Morgan Stanley cutting its price target on Carnival to a street low of $7 a share, and also a bear market case of a total wipe out of the stock down to zero. Basically, he's talking about if there is another demand shock. That's why the analysts there would see that.

So we're seeing some of these cruise liners severely under pressure today, down double digits. You've got no Norwegian down double digits, down to more than 10%, and also Royal Caribbean down almost 10%. And, finally, just want to mention what's happening with a former pandemic darling, I would say. And that being Peloton. Peloton reaching a new intraday low, down more than 4 and 1/2%, just above $9 a share.

And part of this has to do with UBS affirming its sell rating on the stock, talking about analysis on downloads of the Peloton app and seeing some negative user trends there. So this may be why you're seeing some pressure on this stock. Interesting because JP Morgan has an overweight rating on this stock and a price target of $20 a share. But we are seeing pressure on this stock. All-time low. And it's interesting because this was at $150 a share back in February of 2021. I mean, it's trading at a fraction of that.

- That's one way of putting it. Yahoo Finance's Ines Ferré. Thanks so much.

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