Major indices in the red over President Trump's warning of a ‘very painful two weeks’

Yahoo Finance’s Jared Blikre covers today’s market activity on On The Move.

Video Transcript

ADAM SHAPIRO: Welcome back to Yahoo Finance. Within the last 30 minutes, we've seen the Dow sell off more than 200 points. The VIX has climbed to 54. Jared Blikre is here to help us understand what is going on. Jared?

JARED BLIKRE: That's right, Adam. We've got the market selling off pretty heavily here, not any particular headline, so it appears to be technical in nature. We see the Dow here off nearly 700 points or 3%. NASDAQ is off a little bit less, 2.74%, and the S&P 500 off 3 and 1/2%. That would be the most.

So let's take a look at the intraday price action. We can see we gap down to start this new quarter, kind of inauspicious way to do that. And right now we are testing those lows, those session lows right now. Have to see if they hold.

Let's check-- let's check out the VIX right now. That is a little bit elevated. And actually, let's take a year-to-date look just to give some perspective here. So we are trending down, even though we're elevated a little bit today. That's kind of what we would expect when we see the market down. But overall to see it coming down like that is a good sign.

And then the bond market here, we have bonds off, the 10-year T-note yield off about 10 basis points. And we are coming down and testing those lows that we saw earlier about a month ago in March. And that is a closing level now. That's about 0.5%. To the downside from there, we actually hit a low of 0.39%.

And then let's also take a look at the US dollar index because that is a little bit elevated. We can see we are just kind of rising here. We started that move about two days ago and not quite at the levels that we saw over here. Those would be three-year highs. But a stronger dollar is causing a problem for a lot of people in the markets, not the least of which are the emerging markets. But in general we did see a scramble for dollars that the US Fed has tried to mitigate.

And here is WTI Crude. Wow, crude cannot catch a bid, hovering near lows about $20, $0.50. We did see the weekly stockpiles report coming in, having about 13 million barrels added. And that would be the most since October of 2016.

Maybe a little bit of good news-- gasoline is cheap, but unfortunately nobody is driving. Dr. Copper flashing some warning signs as well. We're seeing that market down another two point-- let's call it a two and 2/3 of a percent down. We can see it's 23.5% down year to date.

So let's get a check of the heat markets here. We got the Dow. And we see a couple of stocks in the green. That would be Walmart and Proctor and Gamble. So those staples plays working out today, but for the most part everything taking a bath.

Microsoft in the upper left is down one and 1/2%. Apple is down 3%. J.P. Morgan right here is down 5% and over the last two days 8.6%. Again with the 10-year T-note yield under pressure, we're just seeing financials get hit particularly hard in Europe.

ADAM SHAPIRO: Jared?

JARED BLIKRE: Yes?

ADAM SHAPIRO: When we talk about oil, there was news that the Saudis-- are they actually dumping more oil into the market? I thought we were running out of places to store all of this.

JARED BLIKRE: Well, yes, they are dumping more oil into the market. They're threatening to go back up to 12, 13 million barrels a day. 13 would be a record, but they've been pumping at about just under 10. So that would be a sizable increase.

We still have capacity to store this stuff. And mainly it's coming in the form of floating barges that are usually used to ship the stuff. But only yesterday, Iraq said that they were going to increase production too. So overall I don't see any bullish news for crude anytime soon here except for the fact that it's so incredibly oversold.

ADAM SHAPIRO: There was the report too that we were going to see demand for oil drop by 12 million barrels a day to give people a perspective and put it into context. Normally you see the need for 100 million barrels of oil a day. Now we're talking about 88 million barrels a day. But could we see that actually fall more as the global slowdown from coronavirus spreads? Because China says it's back, but nobody believes their numbers.

JARED BLIKRE: Yeah. I think we could see demand drop even more as expectations for the global fallout from this coronavirus have been understated so far. So it's quite possible. You know, before this whole thing started, we produced about 100 million barrels per day, and we consumed about 100 million barrels per day. But I think what these latest supply numbers that we got out at 10:30 AM from the DOE show us is that we're just going to have huge, huge stockpiles coming online. And I don't see any relief in the near future from that.

ADAM SHAPIRO: Jared Blikre, thank you very much.