Technology stocks lead markets higher, energy moves to the downside

Yahoo Finance Live's Dave Briggs and Seana Smith examine market indices turning positive today amid a volatile session, as well as looking at Tesla, United and American Airlines, and Carnival Cruise Lines.

Video transcript

TAYLOR CLOTHIER: Well Michelle, we've got a lot going on here. Dave and I are going to break down some of these individual movers. But first let's just take a look at the major averages.

Dow flat as you can see. Right now the NASDAQ, that's the big story of the day. Up just about 1%. Dave, we were talking yesterday that some of those big tech names once again pacing the gains.

DAVE BRIGGS: Not just story of the day, the story of the week. We've seen that a couple of straight days this week. It has been stocks, like Google and Amazon and Tesla. And they continue to drive the biggest moves.

TAYLOR CLOTHIER: They certainly do. And just taking a look at this sector action a little bit more of a mixed picture than we've seen over the past two days. You can see energy leading the way to the downside, often nearly 3%, but it's consumer discretionary health care and technology leading the way.

We were just talking about the NASDAQ being the outperformer. We want to point out Tesla, because take a look at this, the stock up just about 10% right now, with just under an hour to go in the trading day. Those strong earnings results yesterday, the fact that they still see deliveries staying on track. That's enough to get the street pretty excited.

DAVE BRIGGS: Yeah we talked to Dan Ives, he still has a $1,000 price target on Tesla. Now perspective huge day, up 10%, still down 32% year to date. So a long way to get back where they were to start this year. But certainly rallying on the fact that it was better than expected, given the Shanghai shutdowns.

TAYLOR CLOTHIER: It certainly was. Right, let's take a look at travel real quick, because on the flip side, you can see a sea of red. A couple of different stories going on here. But first let's talk about the airlines.

United Airlines, they had earnings out after the bell yesterday. Stock off just about 10%. Not far behind is American Airlines. And as I look to figure out where it is, that stock is up just about 8 and 1/2 percent. And Dave, we talked about the fact that there certainly has been this surge in demand for travel, but questions now about whether or not that has peaked.

DAVE BRIGGS: Yeah, it looks like revenge travel is beginning to wear out, that people had those bookings already on. And now that they wear off, and they embrace, or don't embrace the price changes, they start to pull back, demand starts to weaken, we have an analyst on here shortly. But both United and American have cut their growth outlook for the next quarter, and that's what's driving them down.

TAYLOR CLOTHIER: And Dave I know you're also keeping a close eye on some of these cruise lines. We can see Royal Caribbean off just about 9% Carnival, one of the big stories of the day off just over 11%.

DAVE BRIGGS: We're going to talk more about Carnival on our Triple Play. They are dragging the other cruise lines down. And we've seen that a number of times. It's tough for the industry, they just got great news from the CDC about COVID, and then Carnival piles on some bad news about a stock sale, which we will talk about again in Triple Play, but it dragged others down, and they are hammered. So it's for the biggest losers there in the travel sector.