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Market check: Stocks bounce back after Nasdaq entered correction

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Yahoo Finance's Jared Bilkre reports on the market this Thursday morning.

Video Transcript

JULIE HYMAN: So the NASDAQ now down a little more than 10% since its high it reached back on November 19. You can see the drop that we had yesterday in the NASDAQ, so waiting just a sec for it to open up. The Dow and the S&P 500-- the S&P fell below its 100-day moving average. Effectively, what that means is that momentum has been to the downside.

We've seen a tick up in the VIX, the volatility index. So those various trends are reversing themselves, at least for today. We'll see if that lasts. Jared Blikre taking a look at all the charts on the Wi-Fi interactive for us here this morning in the wake of that correction entrance yesterday.

JARED BLIKRE: Yes, and I got some notes on that-- pretty interesting to see that play out. I just want to go to some heat maps here because we have another bounce. You'll remember 24 hours ago, looked like we had a fledgling rally, and then we just kind of sold off into the close. And it was a rather ugly close.

A lot of green. Here Tesla is up over 1%. So is Microsoft. So is Facebook. But, really, the Chinese stocks are what is front and center here.

And I just want to show our heat map. We got Alibaba up 6%, JD.com up 8%. And so this group of stocks has been trading kind of lockstep together and has been very volatile-- up 8%, down 8% the next day. So interesting to see that.

Yesterday, we had a huge breakout in gold. And a lot of the gold miners were surging along with silver miners. The big ones-- we have Barrick Gold and Newmont Mining. Those are in the red today. But a lot of the other ones, look, posting some nice gains here.

And then, finally-- not finally, but I do want to get to ARK, because these components have been under a tremendous amount of pressure. And, Julie, you were showing what's happened since that November 19 high. That's 41 days. And I just want to show what's happened since then in these components.

You can see Square down 2%. I guess I should probably call that Block. But it's been pretty nasty for Square lately-- you can see on a one-year chart they're down 42%.

Energy-- energy front and center once again. Now, it is the worst-performing sector of the day. It looks like that's down about 7/10 of a percent. But we've seen crude oil-- excuse me-- at the highest level since October 2014, so seven-year highs there.

And I do want to point out Baker Hughes company just reported earnings. It was a miss on EPS but strong revenue. And this is a stock that's gone largely sideways over the last year. You can see over the last two years-- and this kind of captures pre-pandemic till now-- up 15%. In fact, a lot of these stocks are only now just recovering those highs.

Take a look at Halliburton here. You can see that's up 18%. Schlumberger, pretty similar deal.

So let's check out the sector action. We've got tech up the most-- that's up 1%-- followed by communication services and consumer discretionary. So those are the three sectors that house all those big mega cap names. To the downside, we have [? Energy ?] and Staples.

Now, I want to get to the S&P 500 and the NASDAQ. NASDAQ entered correction territory yesterday. And I did a little calculation here. I tweeted this yesterday. And the NASDAQ entered correction today after recently setting an all-time high. It's been a buy the last 13 out of 14 times since 1997 with a median gain of 2.09% the following day and 2.97% the next five days.

And here's this table-- goes all the way back to 1971. You can see a lot of red concentrated in the upper half. That goes till 1996. From 1997, pretty smooth sailing.

I also want to take a note that 2001 to 2015 didn't have any new highs. So that period is absent. But, nevertheless, we'll have to see if this little bounce plays out, guys.

BRIAN SOZZI: And, Jared, you throw up a chart on Block/Square, and that stock continues to hover around lows. But it's, again, one of those-- it's just indicative, I think, of what we're seeing in the broader crypto space. Some of these pure-play crypto names, they have really been hammered during this NASDAQ correction.

JARED BLIKRE: Yeah. It's not only crypto, it's also payment companies. So that's what we're seeing in Block. And we can go to the Wi-Fi interactive. In fact, I have a whole heat map on the payment system.

Let's take a look at what's happened over the last two months here. And you can see a lot of these names down quite a bit-- Affirm down about 50% over that period. And then, also, you take a look at the NASDAQ over that same period. You're gonna see a lot of red in terms of some of those names as well. Guys?

JULIE HYMAN: Yeah, definitely. Anything tech, anything crypto-related as well, has been down. Thanks so much, Jared.