This post was written by CNBC producer Robert Hum
The recovery trade continues today. Cyclicals are notably outperforming more defensive names once again, with the Morgan Stanley Cyclical Index is up 3 percent, while the Morgan Stanley Consumer Index is up just 0.75 percent.
This extends the recent trend that has taken place during the current summer rally. Since July 10, the Cyclical Index has risen an impressive 34 percent, although the Consumer Index has gained just 9 percent.
Particularly fueling the strength today amongst the cyclicals are commodity stocks like Freeport-McMoRan, Alcoa,AK Steel, Aluminum Corp of China, which are rising 4-6 percent. Their gains are partially helped by the strong overseas manufacturing data this morning and the weaker dollar which continues to fall midday.