Day Traders Diary

3/25/19

The S&P 500 decreased 0.1% on Monday in a session that showed little conviction from buyers or sellers. Lingering concerns about global economic growth tempered buying interest and contributed to a further decline in U.S. Treasury yields. 

The Nasdaq Composite also lost 0.1%. The Dow Jones Industrial Average and the Russell 2000 outperformed with gains of 0.1% and 0.5%, respectively.

The S&P 500 information technology (-0.4%) and financial (-0.4%) sectors dragged the broader market lower. Conversely, the consumer discretionary (+0.6%) and industrial (+0.2%) sectors outperformed.

Growth concerns were reinforced by another discouraging economic report from Germany. Germany's ifo Business Climate Index for March showed a continued deterioration of the manufacturing sector, which was notable, given Germany's status as a key export center.

U.S. Treasury yields steadily declined throughout the day on dwindling growth expectations. The 2-yr yield dropped seven basis points to 2.25%, and the 10-yr yield dropped four basis points to 2.42% after briefly touching 2.39% -- its lowest level since Dec. 2017. The U.S. Dollar Index lost 0.1% to 96.53.

Homebuilding stocks outperformed amid the continued drop in rates, providing strong support for the consumer discretionary sector. The SPDR S&P Homebuilders ETF (XHB 38.17, +0.49) advanced 1.3%. The Philadelphia Semiconductor Index (-1.3%), on the other hand, pulled back from recent gains, with many of its components weighing on the tech sector.

Apple (AAPL 188.74, -2.31, -1.2%) hosted a highly-anticipated service event, in which it introduced Apple TV Plus, Apple News Plus, Apple Arcade, and Apple Card. Apple did not mention a price for its TV video service. Apple News Plus, a magazine subscription service, will cost $9.99/month. Despite the event, shares of Apple underperformed throughout the day, losing 1.2%.

In M&A news, Thermo Fisher (TMO 268.80, +4.99, +1.9%) will expand its presence into the gene therapy field after announcing it will acquire Brammer Bio for approximately $1.7 billion in cash.

Investors did not receive any U.S. economic data.

Looking ahead, investors will receive several economic reports on Tuesday: Housing Starts and Building Permits for February, the FHFA Housing Price Index for January, the S&P Case-Shiller Home Price Index for January, and the Conference Board's Consumer Confidence Index for March.

• Nasdaq Composite +15.1% YTD
• Russell 2000 +12.2% YTD
• S&P 500 +11.6% YTD
• Dow Jones Industrial Average +9.4% YTD

Headlines provided by Briefing.com