Market check: Dow turns positive in intraday trading

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Yahoo Finance’s Jared Blikre takes a look at today’s market and sector action.

Video Transcript

ZACK GUZMAN: Well, don’t call it a comeback, but the Dow erasing a more than 100-point drop earlier in the session to swing back into the green, as we see energy continue to be a standout. That has been the theme thus far here in the first trading week of 2022. And for more on that, I want to get to Yahoo Finance’s chart master, Jared Blikre, who’s been watching that for us. Jared.

JARED BLIKRE: That’s right. And we just got the Dow turning positive. And guess what? On the YFi Interactive, that means it’s also positive for the year. And once again, here is a four-day view of what has happened this week. You can see it just briefly dipping red earlier today. Now the NASDAQ a little bit of a different story, still at the bottom end of its range, down almost 3% or so, and the S&P 500 off about 1% this week.

And also let’s get a check of the Russell 2000 because with all the value stocks getting a lot of love this week, not really seeing it reflected in the small caps. And this all comes down to what’s happening in the bond market. Worth repeating what happened, especially yesterday with the FOMC meeting. The fact that rates are higher in the face of that pretty much guarantees that we are going to continue to head higher. The 10-year T-note yield hasn’t been this high since, I believe, March or April of last year.

And inside, the inflation expectations have been simply getting crushed over the last few days, especially after that announcement yesterday. And this has important implications for what is moving here. What’s moving? Energy is moving. That is up almost 2%, followed by XLC. That’s communication services. That’s a Facebook story. We’ll get to that in a second. And then financials and industrials, those are the outperformers. So we got cyclicals and value.

And here are my leaders and sentiment indicators. Everything in the green here, except for LQD. That’s in the bottom right. That is a high grade bond ETF. So that’s just fine. KWEB at the top of the list. But I’ll tell you what. You take a look at a four-day view of KWEB, and it’s still down about 2 and 1/2%. And if you go back to the beginning of the rally last year, and I think it started just before Christmas, it’s still down half a percent over that time.

Now what’s up second? We got regional banks, followed by IPOs, retail, retail ETF– that’s XRT. But I want to show you guys something. Here’s the [AUDIO OUT] look. Only thing that’s outperforming this year, KRX. That’s a regional banking index– that’s up 7%– and this value ETF. That kind of shows you what’s been going on. What’s not loved still? IPOs, disruption, solar, software, biotech, gambling, internet. All of these things are down significantly.

Take a look at what’s happening inside ARK over these four days. Only thing that’s positive is Tesla. So thank goodness that’s their number one performer or their biggest position, but really taking hits there. Travel actually looking pretty good not only today, but this year. This is a four-day look. Let’s take a look at the intraday. And we can see Avis Budget Group up 5%. This is one of those expensive high flyers that got knocked down quite a bit at the end of last year. But you can still look at– you can still see it’s up 450% over the trailing year.

And then we can also take a look at one more sector. Here we go. I wanted to take a look at Bitcoin just to take a quick look at what we are. We broke support yesterday, but we are finding support at three-months lows. Guys.