Stocks fall as investors digest Fed decision, oil rises as OPEC+ agrees to increase output

Yahoo Finance’s Ines Ferre joins the Live show to break down how stocks are moving after the Fed announced a 50 basis point rate hike.

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- Now, let's get over to Yahoo Finance's Ines Ferre who's manning the Wi-Fi interactive. Ines.

INES FERRE: And Brian, the market's giving back some of the gains from yesterday. Take a look at our Wi-Fi interactive board. I want to show you what's happening right now with the sector action. And we are seeing consumer discretionary technology, which is lagging right now. Energy is in the green.

Over on the NASDAQ 100, take a look at this. Amazon down more than 4.5%, part of consumer discretionary. Tesla down more than 3%. We're also watching Alphabet, that's slower. We're watching Meta, down almost 4% right now.

I do want to point out what is happening also with some of these retail names. I know you guys have been talking about Shopify, about Etsy. But take a look at Wayfair, down 17%. , Shopify, BBBY, Bed Bath and Beyond, down more than 7%.

And finally, what's happening with oil right now because we are seeing oil extending its gains from yesterday, up 2.5% for WTI. Brent up more than 3%. You've still got concerns about that EU plans to phase out oil imports from Russia.

That has been sending oil prices higher. OPEC plus did agree to increase output by 432,000 barrels per day for the month of June. Guys.

- Amid higher inflation as well, consumers are making less trips to the grocery stores. But one huge question mark going forward from here is how will that net out in superstore visits. They're increasing. So what are the details there?

INES FERRE: Yeah, that's right. And this is from a study from Placer.ai. And basically what they found was that in Q1 consumers have been making less trips or about the same trips as the levels for example in March of 2022 as March of 2019.

So fewer trips to the grocery store, part of this has to do with the gasoline prices because they are consolidating those trips. Albertsons said during their earnings call in April that people were consolidating trips. Their baskets were bigger, but they were trying to make fewer trips because of those gas prices.

Superstore visits have been outpacing groceries. So you're looking at those bulk items, those better price points, the Costcos of the world that Sozzi was talking about earlier. Discount grocers are growing.

So you've got companies like Aldi. That's a private company, but they have been growing their footprint. You've got Grocery Outlets. That's also been growing. In fact, if you look at the year to date for a GO, Grocery Outlet, it's up 19%.

Look, bottom line is that people are paying more now for their food when they go to the grocery store, almost $300 more than they did a year ago, according to Moody's analytics. And so they are looking for better price points.

They are looking to save on trips to the grocery store. They're looking to save on that toilet paper, bulk toilet paper that Brian was talking about.

- Yes, very important point that Brian likes to make.

- Yeah, can't use that one-ply, guys. Can't use it.

- Ines, thank you.