Day Traders Diary

10/30/19

The major averages closed higher after the Federal Reserve cut rates for the third time in the last year followed by comments from Chairman Jerome Powell that signaled it would be a while before the central bank hikes rates. The S&P 500 hit an all-time high, climbing 0.3% to 3,046. The Dow Jones Industrial Average closed up 115 points at 27,186. The Nasdaq Composite ended the day up 0.3% at 8,303.

Utilities and health care were the best-performing sectors in the S&P 500, rising 0.9% and 0.8%, respectively. General Electric was among the S&P 500′s biggest advancers on the back of strong earnings. Johnson & Johnson outperformed all other Dow stocks, rising 2.9% after the company said it found no asbestos in its baby powder after testing.

Powell and the Fed struck just the right tone to satisfy equity investors by signaling it would pause rate cuts but wouldn't think of hiking again until inflation moved higher.

The 2-yr yield declined two basis points to 1.62%, and the 10-yr yield declined four basis points to 1.80% causing the yield curve to flatten. The U.S. Dollar Index declined 0.2% to 97.51.

After hours, Facebook and Apple jumped 2% and 1.5% respectively following earnings.