Day Traders Diary

10/28/19

The major averages performed well with the S&P 500 hit a record high thanks in part to strong earnings and progress on U.S.-China trade. The S&P 500 rose 0.6% to 3,039, closing above the previous record set on July 26. The Dow Jones Industrial Average gained 0.5%, or 132 points to 27,090. The Nasdaq Composite climbed 1% to 8,325.

Microsoft led the major averages rising 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020. Alphabet climbed nearly 2% ahead of earnings.

The Philadelphia Semiconductor Index rose 1.8%. Among the sectors, the communication services rose 1.2% and health care rose a percent while the utilities and the real estate sectored dropped a percent.

Monday also saw some notable M&A activity. Alphabet is reportedly in talks to acquire Fitbit. Tiffany & Co. rose 31% after receiving a $14.5 billion unsolicited offer from LVMH for $120 per share in cash. Liberty Property Trust agreed to be acquired by Prologis for about $12.6 billion in an all-stock deal.

U.S. Treasuries finished lower in a curve-steepening trade. The 2-yr yield increased two basis points to 1.65%, and the 10-yr yield increased five basis points to 1.85%. The U.S. Dollar Index declined 0.1% to 97.74. WTI crude snapped four straight days of gains, losing 0.9%, or $0.49, to $55.95/bbl.