Day Traders Diary

7/12/19

The Dow Jones Industrial Average finished up 243 points above 27,000 at all-time highs heading into earnings season next week. The S&P 500 gained 0.5% to end the day at 3,013, its first close above 3,000. The Nasdaq Composite advanced 0.6% to 8,244. Today's advance was supported by continued hope for a rate cut at the end of the month. For the week, the Dow rose 1.5%. The S&P 500 rose 0.8% and the Nasdaq, meanwhile, ended the week up 1%.

Eight out of eleven sectors recorded gains on Friday, with cyclical groups faring better than the countercyclical side. Industrials (+1.8%) and consumer discretionary (+1.1%) spent the day atop the leaderboard to end the week with respective gains of 1.2% and 2.1%.

Industrials rallied alongside heavyweight Boeing while transport stocks outperformed. The Dow Jones Transportation Average jumped 2.4% with trucking names leading the push. JB Hunt and Ryder spiked near 6.0% apiece, even though peer, U.S. Xpress warned that industry conditions have worsened.

In other high-beta groups, the PHLX Semiconductor Index spiked 1.9% with all but two components finishing higher. The Index extended this week's advance to 2.9% while the broader technology sector rose 0.8%, gaining 1.5% for the week.

Elsewhere, Ford jumped almost 3.0% after Volkswagen confirmed that the two companies will increase their cooperation aimed at developing autonomous vehicle technology.

On the downside, the health care sector (-1.2%) spent the day behind the remaining groups. Drug makers were pressured after Illumina issued weaker than expected guidance for Q2 and lowered its outlook for the fiscal year. Another sector component, Johnson & Johnson slid to a five week low after Bloomberg reported that the company could face a criminal probe into undisclosed health risks associated with JNJ's baby powder.