Market check: Stocks swing positive after taking a beating

Yahoo Finance's Jared Blikre recaps the market before the bell.

Video transcript

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ADAM SHAPIRO: All right, less than seven minutes to the closing bell. A tremendous swing today when you look at the Dow, off more than 1,000 points, now positive by 150 points. Jared, help us understand though what's really happening here.

JARED BLIKRE: The market is very illiquid right now and we're seeing moves to the downside and to the upside just get exacerbated by the low liquidity. And if you blinked, you missed it. What bear market, or what correction to our territory were we worried about earlier? Even the Russell 2000 now up 2%. It was down something like 4% or 5%. NASDAQ up a 1/3 of a percent, had been down 5%.

And I just want to show you one of these candles here. This is today's price action, and this is a strong rejection of this price level. However, we see these candles quite a bit in bear markets, and that's kind of what the market is trading like right now. NASDAQ still in correction, hasn't hit 20% to the downside, but we do see these flashy rallies when the market gets a little bit excited and also a little bit illiquid.

The last time we saw something like that, you would have to go back to March of 2020. So two years ago in the midst of the pandemic we got a couple of these candles, and that started a big price decline. The market jumped up a few percentage points, but then sold off about 25% to the downside. And so you got to take into consideration, are we repricing something into the market as drastic as COVID two years ago?

A hawkish Fed? Well, you have to make your bets here, and that's what the market is doing. Here are the Dow Jones transports. Not looking too bad right there. But let me just jump into the NASDAQ 100 and take a look at some of the heat maps. Guess what. Amazon now positive, along with Alphabet. This was a vastly different picture only an hour ago, much less at the beginning of the day. Facebook also up more than 1%.

And taking a look at some of the biggest winners and losers here, to the top, Peloton, up almost 10%, followed by Datadog and Atlassian, Splunk. But these are a lot of names that have been got absolutely beaten down over the last two months for some of these, since the beginning of the year for the others. So let's take a look at the sector action and see exactly where the money is flowing now.

Now most of these sectors had been down at least 1%, some 2%, 3% at the lows. Now we have consumer discretionary a real bright spot. That's up almost 9/10 of percent. You can see those numbers kind of increasing there, followed by communication services. That's a Facebook story, and energy as well, industrials, financials. So looking like the market is scooping in, buying some tech, some of those beaten down mega cap names, along with energy, which has been the best performing sector of the year. Have to see what happens into the close and especially into that Powell presser on Wednesday, guys.