U.S. dollar holds strong amid market sell-off, all S&P 500 sectors in the red

Yahoo Finance’s Ines Ferre joins the Live show to break down how stocks are moving in early trading.

Video Transcript

BRIAN SOZZI: Let’s get over to Ines Ferre at the market– she’s looking at the markets for us here on this challenging session. I can’t even get it out of my mouth, I’m so excited. Ines?

INES FERRE: No, that’s OK. You said it like it was in Spanish. Anyways, Brian, let’s take a look right now at the markets because we are looking at the Dow that’s down more than 500 points on our YFi Interactive board. Over on the NASDAQ, we are watching the NASDAQ down more than 1 and 1/2 percent. And the S&P 500 is down 1.8%.

We’ve spoken about this before. The US Dollar Index, that’s coming in strong, above 109. Looking at the sector action, all 11 sectors of the S&P 500 are in the red. And you’ve got energy stocks which are lagging the most. Julie mentioned the oil prices, which are tumbling today.

Looking at the Dow also, all 30 Dow components are in the red, with the banks, JPMorgan down more than 4%. The NASDAQ composite, you can see a lot of red on the screen, especially these mega-caps. Tesla down 2%. Meta down more than 3%.

I mentioned the banks, but I just want to reiterate the amount of pressure that we are seeing on these banks after the earnings kick-off today. And then the travel stocks, taking a look at these. A little bit of a mixed action here, guys.

JULIE HYMAN: Well, Ines, I have to say, after our chocolate discussion, I’m doing a little online looking. And I have sticker shock already just from looking at some of the truffle prices. You talked to a grocery chain operator. How are consumers responding to higher prices? I think I’ve just decided not to purchase.

INES FERRE: Yeah, well, I spoke to Mike Davidson. He is the CEO of Bueller’s Fresh Foods over in Ohio. They own about 14 grocery stores, some liquor stores, some restaurants. And he said consumers are reacting to inflation. And he basically confirmed some of the trends that you guys have spoken about, consumers trading down, going to generic brands.

Also, he talked about units being down. So even though revenue is up, unit movement is down. And in layman’s lingo, this means that, because consumers are buying less units of food, grocery stores try to get as many units out the door as they can because they want to get fresher product on the shelves.

And then finally, he also talked about luxury foods, less essential foods, like the seafood department, he said. That’s been struggling. So consumers are not buying as many lobsters, as many crabs as they would otherwise, as well as also high-end liquor. So those pricey liquor bottles aren’t moving off the shelves as fast.

JULIE HYMAN: News you can use, for sure, on all of this. Thank you so much, Ines, appreciate it.