Day Traders Diary

4/30/15

The stock market has spent the first half of the Thursday session in negative territory with the Russell 2000 (-1.3%) and Nasdaq Composite (-1.1%) trading behind the S&P 500 (-0.7%).

Equity indices slumped at the start, all but ignoring generally positive economic data. Instead, the market has been pressured by losses in most sectors with the top-weighted technology space (-1.2%) trading only ahead of the utilities sector (-1.6%).

As for technology, the group has retreated with its largest component—Apple (AAPL 125.55, -3.09)—trading lower by 2.4% after the Wall Street Journal reported that some watch components provided by AAC Technologies (AACAY 53.20, -2.90) may be defective. To be sure, the sector's weakness isn't entirely due to Apple as social media names lag following disappointing earnings and guidance from Yelp (YELP 39.61, -11.67). Shares of YELP have plunged 22.8%.

The tech sector has weighed on the Nasdaq since the start with biotechnology contributing to the underperformance. The iShares Nasdaq Biotechnology ETF (IBB 335.90, -8.91) has tumbled 2.6%, and is now down 7.6% for the week. Understandably, today's loss in the high-beta industry group has kept the health care sector (-0.9%) behind the broader market. 

On the flip side, energy (+0.1%) has benefitted from a 1.1% gain in crude oil, which currently hovers near $59.06/bbl. The energy component has climbed through the morning while the Dollar Index (94.94, -0.27) drifts just below its flat line after erasing its overnight decline. Currently, the index is on track for its seventh consecutive loss.

Treasuries hover near their session lows with the 10-yr yield higher by four basis points at 2.08%.

Economic data included initial claims, Personal Income/Spending data, Q1 Employment Cost Index, and Chicago PMI:

The initial claims level declined to 262,000 for the week ending April 25 from an upwardly revised 296,000 (from 295,000) while the Briefing.com consensus expected a decline to 290,000 

According to the Department of Labor, there were no special factors that impacted the initial claims reading, which hit the lowest level since April 2000

Personal income growth was virtually flat in March after increasing 0.4% in February while the Briefing.com consensus expected an increase of 0.2% 

That was the weakest personal income increase since December 2013

Personal spending increased 0.4% in March after increasing an upwardly revised 0.2% (from 0.1%) in February while the consensus expected an increase of 0.5%

The Employment Cost Index increased 0.7% in Q1 2015 after increasing a downwardly revised 0.5% (from 0.6%) in Q4 2014 while the Briefing.com consensus expected an increase of 0.6% 

Wages and salaries increased 0.7% in the first quarter, up from a 0.6% increase in Q4 2014

Benefits spending growth held steady at 0.6%

The Chicago PMI increased to 52.3 in April from 46.3 in March while the Briefing.com Consensus expected an increase to 50.0 

The increase ended two consecutive monthly contractions

The Production Index increased to 52.7 in April from 49.3 in March