New Zealand Markets open in 5 hrs 9 mins
  • NZX 50

    +196.42 (+1.67%)

    +0.0025 (+0.4001%)

    +76.40 (+1.06%)
  • OIL

    +1.23 (+1.69%)
  • GOLD

    +7.10 (+0.36%)

Stocks, sectors hold onto Friday gains heading into the closing bell

Yahoo Finance markets reporter Jared Blikre examines the afternoon sector action, Nasdaq leaders, and Ally Financial shares ahead of the closing bell.

Video transcript

DAVE BRIGGS: All right, we're just a couple of minutes away from the closing bell, so let's bring in Yahoo Finance's Jared Blikre to break down the market action. Jared, hello, my friend. What are we seeing?

JARED BLIKRE: Oh, well, we'll get to the general markets in a second. Let's take a look at Ally Financial first amid everything that's happened this week. They announced earnings this morning. And guess what? The stock is up by 20%. That is a record amount for any day. And this is after the company reported fourth quarter earnings that were better than the Street expected.

Now, revenues also came in ahead, but they're being offset modestly by worsening provisions for credit quality, all of which is catching the eye of analyst firm KBW. They're honing in on the 2023 outlook, where management provided metrics that were worse than their expectations, but better than the low bar analysts had planned for.

So the analyst notes that the used car prices at this point are tracking management's expectations of weakness. And net interest margin is about in line with Wall Street expectations. Now, lots of negative sentiment is already priced into the stock. And KBW is expecting, quote, "a relief rally." Let's take a look at that stock right here. And this is basically since inception here, going all the way back to about 2014, and you can see it's up a whopping 22%. So like a lot of other financial firms, especially some of the non-money center banks, they have had a little bit of trouble this week. And I'll show you that in a second.

Now I want to hone in on the sector performance for the week. This is actually today. You can see the top three sectors there, XLC, XLK, XLY. Those are the mega-cap sectors. And when you take a look at what's happened this week, not as pretty. Industrials down 3 and 1/2%, utilities down 3%. But communication services-- that includes Alphabet and also Meta and also Netflix that's in the news today-- that is up 1.4% over the week, and then followed by energy and tech. Those are the only ones in the green.

I want to show you something else here. I'm going to go to the indices now and show you what's happened for the week. Now, the Dow, unlike last year, most of last year, it was the outperformer. So far this year, it's the underperformer. Same this week. Now, the Dow is down just over 2 and 3/4 of a percent over the last four days. And now you compare that to the NASDAQ, which is leading today up 2 and 1/2%. Guess what? It is now positive for the week, and that is up half a percent.

Now, I want to show you something else. Here is the S&P 500. This kind of sets up what we might expect for next week. This is a one-year chart. We are consolidating very, very, very tightly, not only from the upside, but also from the downside. So imminently, within the next week, probably sometime next week, we're going to have to break out. Whichever way we break, probably going to get a lot of momentum.

Now let's cycle through some of the heatmaps on a weekly basis. That was the sector action. I'm going to go to the NASDAQ. Now this is a four-day performance here with about 30 seconds to go. We've got Tesla up 9%, Alphabet up 6 and 1/2%, Apple, 2.2%. And when we take a look at some of the leaders and sentiment indices, BITO, this is only over four days. Bitcoin, that ETF is up 14 and 1/2%, followed by meme stocks, software, ARK, internet, and also Korean stocks. To the downside, cannabis and regional banks. I did mention them before. Those are taking the biggest hit.