Day Traders Diary

10/17/19

The major averages close modestly higher after a draft Brexit deal was struck between the European Union and the U.K. Better than expected earnings also lent support to the major averages. The Dow Jones Industrial Average finished up 27 points, or 0.1% after rising as much as 110.18 points earlier in the day. The S&P 500 gained 0.3% while the Nasdaq Composite advanced 0.4%.

U.K. Prime Minister Boris Johnson struck a Brexit deal. The European Commission President Jean-Claude Juncker tweeted that the deal was a "fair and balanced." British lawmakers in Parliament will vote on it on Saturday.

In corporate news, IBM fell 5% after providing mixed results. IBM missed revenue estimates but beat earnings estimates. Netflix rose 2% despite reporting U.S. subscriber additions below prior guidance and guiding the fourth quarter below consensus. Morgan Stanley inched up a percent after beating top and bottom-line estimates. CSX also rose 1% after beating earnings estimates. Taiwan Semi fell a percent after beating top and bottom-line estimates and guiding the fourth quarter revenue above consensus.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased two basis points to 1.61%, and the 10-yr yield increased one basis point to 1.76%. The U.S. Dollar Index declined 0.4% to 97.62. WTI crude rose 0.9%, or $0.47, to $53.89/bbl despite crude inventories rising more than expected in the EIA's weekly inventory report.