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Nasdaq's banner month, hot IPO summer, Hertz shareholders cheer bankruptcy exit

Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video Transcript

KRISTIN MYERS: First, I want to turn to Yahoo Finance's Jared Blikre. Jared, let's just start with an end of quarter review. It is the last day of trading for the quarter. It represents the last day for the first half of the year. Give us a breakdown of what we saw so far.

JARED BLIKRE: Yeah, it's been an eventful month, quarter, and also a half year. So we'll go through it all on the YFi Interactive. I'm going to break down the sector action first. And this is year to date, sorting by performance here. So XLE is up 41%. That's energy. Then financials up 24%. Then real estate, communication services-- that's where Facebook and Google live-- and then industrials. So rounding out the sector action here really about the value and cyclicals with the exception of real estate and communications services.

Now this has changed. So over the last three months, you can see the emergence of tech. Tech is the greatest gainer over the last three months, up nearly 13%, then followed by real estate, then communication services, and energy. We know crude oil has been on a tear. That's been boosting that sector. But some of the other value sectors like financials, those are now underperforming.

And when you take it down to the last month, you really see a different picture emerge. It's all about the FAANG sectors. We got tech and consumer discretionary. That's Amazon, Apple, Microsoft, et cetera. Then real estate, then energy, then communication services. But to the downside, we've really seen the value trade and also the cyclicals flounder this month. So materials is the worst performer-- that's down 6%-- followed by financials, utility, and industrials.

And I just want to show what's happened to the NASDAQ, as a lot of these names have surged over the last month. Tesla up 9%. We know-- I've been talking about this stock kind of making a technical comeback here. Tesla is having its best month since January. ARK, by the way, the ARK Innovation Fund, having its best month since November. So a lot of the names that flagged, were down over the last few months, really got a resurgence.

And DocuSign here, number one stock in the NASDAQ 100 over the last month, up 40%, followed by Biogen, Moderna, Nvidia, and Splunk. So another thing we haven't talked about a lot necessarily, or I haven't, is the resurgence of healthcare. We've also seen a lot of these biotech stocks come back over the last month. Guys.

ALEXIS CHRISTOFOROUS: You know what else is coming back, Jared? It's IPOs. I mean, there is an IPO bonanza happening today on Wall Street. I know the big one, of course, is Didi, the Chinese ride hailing company having a really nice first day. Do you think that we're going to be able to hold on to this momentum for the rest of the year in the IPO market?

JARED BLIKRE: Oh, that's a big if. We have a ton of big IPOs coming to market. Robinhood is probably going to come up next month, a few other big ones, some unicorns, and a bunch of smaller ones. And I'll tell you what. I think that it is going to happen that way. And it almost has to, namely because we are in a rising interest rate environment. That does not favor these high growth companies that need a low cost of capital to operate. And so when you take that into consideration, we really could see an incredible surge this year. And it's just because they have no other time to go.

Sorry, the YFi Interactive is not behaving, so I'm trying to get that back up. But just want to go over some of the lead tables or some of the issuance that we've seen so far this year, $326 billion in global IPO issuance. And then if you include additionals, that's companies that are adding to their stock. We saw AMC, GameStop, and also lots of other bigger companies take advantage of low interest rates-- 659 billion. And it's only the first half of the year. So this is going to be really important and interesting to watch going forward. Guys.

KRISTIN MYERS: All right, Jared, let's talk Bed, Bath & Beyond. They did report quarterly earnings. Give us the details there.

JARED BLIKRE: Yeah, really nice beats here. And you can see the stock-- I got the YFi Interactive back up finally. It's up 7% this-- today, alone. And if you take a look at what they've done over the last year-- and I'll get a year-long chart here-- they've really been engaged in this turnaround strategy that especially Brian Sozzi has been talking about.

But the CEO, Mark Tritton, said in the earnings release, he's highlighting the gross margins, that they have been improving, driven by its expanding private label push, so some of their own merchandise that they've been selling. Also pointing out an improvement to the company's e-commerce business. So the stock has more than tripled over the last year. And it's up 200%.

And you've seen-- you can see here, it got kind of caught up in the GameStop phenomenon, the Reddit phenomenon. And again, we had some interesting moves here in-- about one month ago. But this is a stock that is steadily making a comeback.

And I'll just highlight some of the numbers from the report here. Net sales of $1.95 billion. Also, second quarter net sales, expecting them to be higher. So they've raised their full fiscal year sales forecast to between $8.2 billion and $8.4 billion. It's a company that was kind of left for dead by many. And now it's on the rise again. So hopefully, their turnaround strategy continues.

ALEXIS CHRISTOFOROUS: Speaking of left for dead, today's a big day for Hertz. They're exiting bankruptcy. And it looks like the Reddit crowd was pretty smart in hindsight, at least on this one.

JARED BLIKRE: Yeah, and I'll tell you what. This was almost unprecedented. Let's go through the history here. I'm going to sort all these meme stocks by performance and go to year to date so you can really see the big leaders. It looks like Hertz is number five here-- AMC's number one-- but 618%.

And if you take a look at what this stock has done over the last year, I remember six months ago or so during the GameStop phenomenon, and they were trying to raise capital. They were thinking about, as they were in bankruptcy court, going to issue stock. The SEC put a hold on it, says you can't do it.

But I'll tell you what. One thing I learned today from some of the articles circulating, this is a 103-year-old company. Did not know that. I imagine they weren't renting cars 103 years ago. They might have pivoted. But the stockholders are really getting a windfall deal here. They're also going to get warrants that entitle them to buy more shares for the next 30 years at a strike price of $15-- $13.80.

And you can see the stock's already at $9. It hasn't emerged from bankruptcy yet. There could be a lot of happy investors who bought this particular stock. I'm not saying you should, but if you got in early, you might have a favorable outcome, thanks to this bankruptcy court ruling.

KRISTIN MYERS: Yeah, Jared, I think that a lot of those Reddit, those meme trades, a lot of folks lost a lot of money. But man, if you were able to get in on some of those moves, definitely a lot of money to be made. Almost-- we don't even ignore it anymore. We have to talk about it almost on a near daily basis. Thanks so much, Jared. We'll see you at the half hour.