Stocks open higher, Elon Musk now officially ‘Technoking’ of Tesla

Yahoo Finance’s Jared Blikre, Myles Udland, and Brian Sozzi discuss latest moves in the market.

Video Transcript

MYLES UDLAND: All right, let's stay on the markets here as we get things underway. We see all three majors have indeed opened in the green as we get our early indications going here. Jared Blikre joins us now for a look at how things are setting up on this Monday morning, Jared, coming off those record highs in the S&P and the Dow on Friday.

JARED BLIKRE: Yes, we have. And it looks like we have a bullish setup to the market right now. The Dow is in the lead, up 3/10 of a percent. You can see that's good for a couple points. Let's get a intraday or a two-day chart here. There we go, 111 for the day.

S&P 500 and NASDAQ just up marginally. Russell 2000 here off a little bit. Looking inside the NASDAQ 100, I believe it's going to be a mixed picture. That was what we were seeing prior to the open. And indeed, we're seeing Amazon off nearly 1%. Apple's up a quarter of a percent.

A lot of big movers here. NXP is a standout. That's up about 7% in the early going here. But let's check out the sector action. We got industrials in the lead, followed by utilities, staples, and communication services. And this is as a 10-year T-note yield coming off a bit, but we have a flattening of the yield curve.

So interesting setup here. Energy the biggest laggard, that's down about 2/10 of a percent. So really not seeing anything big. We were checking out some of the travel space, some of the travel names just before the open. We can see American Airlines, that's up about 4.5% in the early going. Royal Caribbean up 3.5%.

We got to check out the EV space because we got some new information about the titles at Tesla. So Elon Musk now going to be called Techno-- what is this, Technoking of Tesla. I'm not even sure if I pronounced that right. And we also have a new master of Coin, that's the CFO. Sounds kind of "Game of Throne"-ish for me. But so far, Tesla in the red for about half a percent here.

Also, have to check in on crypto because Bitcoin coming off a record high of above 50-- above 60,000, now pulling back. You can see over the trailing months here. We got that breakout last week. And we're able to get to new highs over the weekend, but consolidating those moves, as is often the case. And we got a big mover over the weekend in the crypto land. Guys?

BRIAN SOZZI: Jared, what are you seeing in Apple?

JARED BLIKRE: Apple? Apple was off-- Apple was in a bear market for some time. And let's go to a chart here. I can pull it up with the NASDAQ 100. So it's off of those lows, but Apple is one of those big sentiment stocks that you really want to see help carry the market. If Apple's not participating in a rally, probably going to be difficult for at least the NASDAQ and especially the NASDAQ 100 to climb to new highs.

But you can see here, we've got this negative trend line that Apple is still stuck in. And until that's decisively broken to the upside, probably going to chop around and could potentially go down some more. So definitely going to be watching Apple and Tesla this week, Brian.

MYLES UDLAND: You know, Jared, I guess just quickly to that point, we touched on it a little bit with Mike Antonelli who called out the growth names. Like, he's trying to reiterate that growth is not dead. But I mean, it's been flat to trending down, depending on the exact ticker, especially the big cap FAANGs for a little while.

Because the market is grinding higher and because everyone's excited and we're going to get 10% GDP and all this stuff, as you see the setup broadly, is there maybe an underrated amount of, I wouldn't say weakness, but a setup that could then turn weak, looking at kind of how the market's been trading?

JARED BLIKRE: Yeah. And you talk about growth and the periods of time that it has been outperforming the market, and it just hasn't really been that way for long periods of time for more than a year or year and a half this century. And so you have to go back to areas like the Benjamin Graham and also the Warren Buffet areas of, like, the 1950s and parts of the 1960s to really get those value plays going.

But I have-- let's take a look at the WiFi Interactive here. Here's year-to-date in value, and it has been outperforming. I think what's different this time, and graveyard of history is littered with people who utter that phrase, but what's a little bit different about this time and why we might return to some of that growth area that we saw before is we have the fiscal stimulus, for better or for worse, lots of fiscal stimulus along with the monetary policy.

I think monetary policy has kept interest rates pretty low, almost too low, for a long time. And I know, Myles, you were quoting-- promoting a Joe Weisenthal article last week that I thought was pretty interesting too. You know, you've got all these VC fund guys coming out, kind of goldbug-ish, but maybe they were just talking their books, trying to keep interest rates low.

Because in that environment, growth outperforms, and value underperforms. Here's the 10-year T-note yield, down about 1 basis point today, but coming off of these highs that we haven't seen in 13 months. So I think there's a lot more expansion of the yield curve, and there's a lot more to be done with value, with cyclicals this year, which might be a break from the prior cycle, simply because of this fiscal stimulus that we have.

MYLES UDLAND: Yeah, and, you know Jared, it's one of those things where-- that article was basically saying that when policy is easy, it's not that value doesn't work, it's that anything that isn't value does. And we're kind of in an inverse situation now. Rates continue to rise, not necessarily does value have to benefit. It's just that things that are growth are just not going to be in favor.

So I think that's why we see very boring stuff like energy, materials, industrials, and financials continue to lead. And the three of us know, none of that stuff is sexy, none of that stuff is interesting, none of that stuff usually gets funded by guys out in Silicon Valley. So it'd be interesting to see how long this period of time goes and sort of how we resolve this tension as it were.

All right, Jared Blikre with a look at how things are opening. Jared, we'll stay in touch with you throughout today's coverage.