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Value stocks outperforming this month, China stocks rally

Yahoo Finance’s Jared Blikre breaks down how markets opened on Wednesday.

Video transcript


BRAD SMITH: Welcome back to "Yahoo Finance Live" this morning, everyone. We're taking a look at the major averages. We are mixed right now. The NASDAQ is the lone US average in positive territory right now. We're nine minutes into today's trade. Let's get to Jared Blikre, live at the YFi Interactive. Jared.

JARED BLIKRE: That's right, so not too much movement so far. By the way, that's a good thing. We've seen volatility really come down, although we haven't seen liquidity really turn-- returned to the markets. But since it is the last day of the month, I thought we'd do kind of a recap on the indices over the entire world.

It has really been a story about China. The Hang Seng there up about 20%. And then we also have the DAX up 8%. Having talked a lot about that. Some other winners in Europe on the top row. And then the US indices tend to be on the middle row. We got the Dow up 3% and the S&P up 2%.

But let me go back and show you what's been happening with the sector action because there's been a huge outperformance by the Dow-like stocks, that would be more the value and cyclical stocks. Materials, industrials, financials, all of those levered to the cyclical value trade. And that is part and parcel with the US dollar coming down. That's something that's been a real feature of the market that we've seen this year. Utilities, staple, and real estate, that is all the outperformers right there.

And I just wanted to hit on some of the trending tickers of the day, too, just to show you what's going on. I think it's illustrative of what's going on in the earnings right now. Now, you guys covered CrowdStrike. I think it's-- I think it's really notable that they noted some of the macro headwinds, and that's why this stock is taking a huge bath right now. You can see it's at the lowest point of the year.

But guess what? Intuit Software, at one-- I think it's a Credit Karma unit, they said something very similar, macro headwinds. They could not deliver the guidance that Wall Street was looking for. That stock is only down about 40 basis points. But is it foreshadowing more to come here? We're gonna get some more software earnings I believe after the bell so we'll be on top of that.

Just wanted to show you also what's been happening in the Chinese market to kind of round things out. And over the 21 days in this month, real outperformance here. Now, are they out of the woods just yet? Many of these stocks have not even climbed back one quarter of their losses for the year. So not just yet. But really surprised to see this at the end of the month here, guys.

BRIAN SOZZI: CrowdStock-- CrowdStrike taking a bath, like-- well put, Jared. Well put.