Stocks & bond yields paring losses, Newegg sinking as AMC & Express jump, Bitcoin testing critical lows

Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video transcript

- I want to turn now to Yahoo Finance's Jared Blikre for some of the trending tickers today. And Jared, let's just start with what's happening on a broader level in the market, as we're seeing right now equities really continuing to accelerate some of those losses.

JARED BLIKRE: Yeah, I should point out that we're off the lows. And it could be worse, because guess what, the Russell 2000 briefly, briefly turned positive. Still looking at some of these sectors selling off here. Energy had come back almost positive, it's now in the red for about 62 basis points. But all of this is more clearly reflected in the bond market.

We know that longer term yields have been sliding all week. They're now down, [? tenure ?] is down about 15 basis points. At its low the 30 year off a similar amount. And this gets back to the growth versus value cyclical. We've had a little bit of a scare with the Delta variants and whatnot. But all in all this isn't a complete disaster. But when we have these low liquidity days, low volatility days building up over the summer, and the market is climbing that wall of worry, S&P 500 and NASDAQ, even the DOW reaching record highs. You can have these one off days.

And the question is, is it really a one off day? Is this going to be the bottom? Because we saw a lot of interest at the lows or could it be a multi-day or a multi week slide? We really don't have much news to focus on until we get earnings season in a few weeks, that's going to be the big banks. And we could see, because the banks are a value trade, we can see the banks pick up and kind of carry the market from there. But what happens today or into the next couple of weeks kind of up in the air right now, no clear direction.

- All right. Speaking about those big banks, let's talk about Wells Fargo right now, planning to stop offering personal lines of credit. Give us those details.

JARED BLIKRE: Yeah, this is a really abrupt move. And it's going to hurt because a lot of their customers, so a personal line of credit is kind of like a credit card except you don't have the card. You can use it to consolidate your loans, to repair your house, or to rebuild or build an addition to your house, what have you. These can be 3,000 to 100,000 in value.

And so Wells Fargo is terminating these accounts with 60 days notice. So people won't be able to use them after that. They'll have to repay their loan of course, and there's going to be a fixed rate of interest for that, that they'll have to continue paying. But this is kind of a lifeline for a lot of people. And not only that, it's going to hurt their credit scores because any time you close an account, your FICO score decreases because you don't have as much available credit.

So for people who are already in a bad situation, a lot of people in the pandemic struggling to pay their bills, find another job, this only deepens the cuts. And it makes things a little bit worse for them, which is really too bad. But Wells Fargo has been trimming a lot of their business lines, they haven't been able to expand for several years because of the whole fake account scandal. I think it was last year they sold their Asset Management and also their corporate trust units. They divested a $10 billion private student loan book. So this is kind of what Charlie Scharf, the CEO, this part of his turnaround plan. But it's going to be choppy and it maybe not the best thing to be a Wells Fargo customer right now if you have one of those personal loans.

- All right Jared, let's talk now about meme stocks. It's one of our favorite conversations to have. We saw Newegg, I'm not sure if it was yesterday or earlier this week. So we saw Newegg absolutely skyrocketing and now it's done a complete about face, which we see happen a lot with some of these meme stocks. Which of course, is allowing some of these other stocks to make some gains. Tell us more about what's happening there.

JARED BLIKRE: That's right. The meme giveth and the meme taketh away. I mean, if you look at a chart of Newegg today, it's down 34%. That seems like a big deal, right? Over the last five days still up 130%. Over the last seven days up 336%. Now if you bought the highs yesterday, you're in a lot of pain today. But most people probably bought on the way up and are somewhere around break even. And I use something called anchored VWAP, the average selling price, average purchase price to track that.

So I would say we're at an equilibrium price right now. Probably don't want to see 40 broken to the downside, otherwise we could see the losses accelerate. So that's Newegg, but I was looking at some of the other main stocks today. Most of them began the day in the red, but are now climbing back. Some of them are, so I'm looking at Virgin, Galactic, that's up about 14%. Express is up about 10%. And some of the others I'd say about 50% of the list that I track on a daily basis is in the green now, which is notable because the entire board was just about red earlier today.

- Yeah, and we have Carver, which I was talking about at the beginning of last hour, might be new to that list perhaps up over 235% right now. So Jared, before we let you go, I do want to ask you about Bitcoin, about cryptocurrency. We've been seeing Bitcoin slide. Tell us a little bit more about what's happening in the crypto space.

JARED BLIKRE: Yeah, I've been saying for several weeks that the longer we stay around this $30,000 to $35,000 range, the greater the possibility that we slide. And if we get below $30,000 it opens up $20,000 pretty quickly. There are a couple of reasons for that. When Bitcoin was on its ascent from $13,000 to $20,000, it paused very briefly there. And we had some indications of interest, some buying that took place there, maybe some selling too.

And then it was off to the races. And we didn't really get much price consolidation until we hit $30,000 and above. So the fact that nobody was buying between $20,000 and $30,000 there's really not a floor there. In addition, the miners could be in trouble here because when they don't have as many computations to make, when they're not mining as many bitcoins, that's their source of income. They could be forced to sell bitcoins in order to cover their costs.

Now the good news is, if they're not doing as much mining, that limits supply in the future. But in the short term we could see prices correct very, very sharply to the downside. And then finally it would take a few months, maybe a few quarters, maybe even a year like last time, to finally build the institutional support. So cross your fingers and say $30,000 please hold.

- All right, thanks so much Jared. We'll see you at the half hour for a look at the oil markets as that OPEC plus drama continues to drag on.