Market check: Stocks bounce back slightly after Nasdaq drops 4%
Yahoo Finance Live's Jared Blikre breaks down midday trading in the stock market.
ALEXIS CHRISTOFOUROS: Want to check in with Jared Blikre now for more on today's selloff. And I don't know if this is just some bottom-feeding here, some investors looking for some bargains, but we are way off our session lows, Jared.
JARED BLIKRE: That's right. And this is a very illiquid market that we're dealing with right now. You take a look at the YFi Interactive, even the Russell 2000 has turned green. And let's just take a look at that. We were talking about the Russell potentially slipping into a bear market on the close. Looks like it's going to miss that right now.
I think this is IWM. We'd have to look at the underlying index. But it looks like it may have turned the corner for the day. And here's the NASDAQ. NASDAQ was off 5% at the lows right here. And we are just screaming higher. But is this going to last? Is this just a dead cat bounce?
Unfortunately, due to the low liquidity in the market, I'm not making much of this rally right now. But nevertheless, we want to take a look inside the market. NASDAQ 100 looking a bit better than it did earlier in the day. At least we're seeing some pockets of green here. You can see Costco up just a meager 18 basis points. Qualcomm, Broadcom, so it looks like some chips are getting some of the buying action today.
Facebook now up 1/2 a percent. Can see Tesla is still down over 4%. And let's take a one-year look at Tesla. You can see, after all this volatile action, we are just coming back down and testing the 900 level. That's a pretty big level. I think on an intraday basis, we were back there about a month ago. Nevertheless, going to want to focus on that.
And let's take a look at some of these other heat maps. Travel sectors still looking pretty bad. Avis-Budget Group just barely turning green there. But Carnival Cruise lines had been off 5%-6% at the lows. That's still down 3%, so is Norwegian Cruise Line here. And Airbnb down 8% as well.
I want to take a look at the semiconductors, see what's turning green here, mentioned Qualcomm and Broadcom, Applied Materials also up 1/2 a percent. Skyworks up about 6/10 of a percent. So seeing some signs of life here. But still, AMD, Nvidia, two of the big high-flyers each down more than 4 and 1/2 percent. So is ASML.
And you take a look at something that has turned a little bit green today, and we can talk about some of the impetus for Kohl's in just a second here. But just wanted to show you that this has been a very strong sector all day long.
And Ines Ferre, she let me know that the homebuilders also looking green. She's going to be up at 3:40 PM to tell us why, guys.
KARINA MITCHELL: OK. And you just said it right there, Kohl's one of the rare bright spots today in the market, Jared. Stock is up as analysts mull some takeover offer bids.
JARED BLIKRE: That's right. And this story dropped this morning a little bit out of the blue. But kind of catching traders by surprise, I would say. $62, could go a little bit higher. A lot of analysts saying that the suggested purchase price of $64, a little bit too low. Could be as high as $70-$75.
But let's take a look at a two-year chart so we can really get a handle on what's going on here. This is a stock that has been trading sideways for just about over a year. And in one day, it is managed to climb from the bottom of its range to the top. And if it can't punch through there, probably going to get some more resistance. And it's going to have to consolidate around these higher levels as it entertains some of these offers.
And I do have some notes from Bloomberg Intelligence on this. And they're writing-- UBS's Jay Sole, he's writing that the investor group may face challenges in getting financing for a Kohl's deal. They're talking about that activist investor in the company right now. For one, Sole doubts that the value of the company's real estate will be sufficient to serve as adequate collateral. And two, he doesn't think an operational turnaround plan exists that will justify lending creditors enough capital to make the deal happen.
They're maintaining their sell with a price target of $38. And you can see that's considerably below the current price right here, guys.