MARKETS: Energy and financials drag down the Dow 516.81 points — YF Premium is bearish on Kellogg (K)
Yahoo Finance's Jared Blikre joins Jen Rogers to break down the day's price action in stocks as well as a short in Kellogg (K), a YF Premium Investment Idea.
Video Transcript
JEN ROGERS: Welcome back to "Yahoo Finance." Dow down for the third straight day here. Dow ending off over 2%, down 500 points. Let's bring in Jared Blikre to take a look at the day and your premium idea. Jared Blikre.
JARED BLIKRE: That's right, Jens. We have the Dow off about 500 points.
[DIGITAL EFFECT]
Kind of an ugly tape. NASDAQ is down 1 and 1/2%, S&P 500 down 1.75%. Here is the day's price action. You can see it was a pretty severe drop right here, but then we stabilized, had a little bit of a rally into the close. But traders are going to be targeting 2,830 to 2,840 tomorrow for fresh shorts. So we'll keep those levels in mind. Just taking a quick look at the sector action, we have utilities in the lead, followed by consumer staples and health care to the downside.
Energy just really taking another bath. That was off 4 and 1/2%. And then financials talking about the big banks. Those are down substantially as well. You can see it's down 3% there. Now for our "Yahoo Finance Premium Idea," we have Kellogg Company.
[DIGITAL EFFECT]
This is a short. And if you take a look at the year to date, we can see this bearish wedge that is set up. And it's already been broken here. And so we're targeting 49 to 52, which is somewhere down here. Probably want to target the upper end of that. Otherwise, you have to punch through multi-year lows. But then this gives us the opportunity for a pretty good reward to risk ratio of about 4 to 1, by setting our stops up here at about $67. So again, that's "Yahoo Finance Premium." You can get a free checkout on our site. Try it for 14 days for free. Jen.
JEN ROGERS: Jared Blikre.