Clouds affecting color temperature

[David Calson]

How do clouds affect color temperature and towards what color? Might be a bit of a newb question, but I notice on my camera that it has white balance setting of daylight and cloudy.

[David Mullen ASC]

Direct sunlight is warmer in color (lower in Kelvin) than skylight, so when sunlight is blocked by clouds, you get a color that is a mix of the two. In open shade, the light is even bluer being just skylight.