Market check: Stocks edge lower on inflation concerns

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

Video Transcript

JULIE HYMAN: This is Yahoo Finance Live. We are seeing markets pull back, but a relatively modest one. And for once, we're actually seeing the NASDAQ down the least of the three major averages. Jared Blikre is monitoring all the action for us from the floor of the New York Stock Exchange. Hey, Jared.

JARED BLIKRE: Hey there, Julie. And I'll tell you what, looking at the YFi Interactive, we've had a series of days where we just go up one day and down the next, as we've been talking about. And that's because we're simply tracing out a trading range. This is a two-month chart of the S&P 500.

I believe we're up to eight sessions now inside the same trading range. So really, until we break above 4,200, it doesn't mean a whole lot. I will say that most of the markets look exactly like this, except for the Russell 2000. So that has broken to the upside, and we want to monitor that.

Now, also taking a look at what the NASDAQ 100 is bringing to the table, a lot of these Chinese stocks that we were mentioning yesterday or that I was bringing to the forefront because they were the only group that looked like in the morning when the market opened red that they were green. Guess what? Green again. And we'll go back to that.

But you can see Alibaba up another 4%. And let's just check out the two-day totals here. And we can see perhaps break into the upside. I like to monitor KWEB. That is the Chinese ETF, internet ETF. And that has been extremely depressed lately. So we'll have to see what comes of that.

Checking in on the banking sector, we have a lot of red on the screen here. I want to take a look at the Ark Invest components, and guess what? These are in the green now. So, taking this all together, some of the leaders that have been really depressed this year are showing some signs of life. When the market opens red, that's slightly bullish. I think a lot-- in fact, a lot is going to hinge on what comes of the CPI print tomorrow morning. I think if it's extremely hot, that could be a negative warning sign for the markets. And that could take the markets down.

But I think it's probably going to be a positive catalyst. If it comes in a little bit under expectations or even in line with expectations, the markets could very well run with this. And I think we know who the new leaders are. They're going to be those beaten down stocks. And people will call it a junk off the bottom rally, a short covering rally, but hey, we are in a bear market. It looks like the markets want to break out, but we've got to take this with a grain of salt and also wait for that CPI print tomorrow.

BRIAN SOZZI: Yeah, Jared, just as we were talking to on the stock on the move is Roku, Netflix offering a no comment to Yahoo Finance, to us, on speculation that Roku and Netflix might be nearing some form of deal or tie-up. Jared Blikre, thanks so much.