Day Traders Diary

10/31/19

The major averages pulled back despite better-than-expected earnings from Facebook and Apple and the Federal Reserve's third rate cut of 2019. Investors took a pause and turned their focus to U.S.-China trade negotiations that are coming back into questions.The Dow Jones Industrial Average closed down 140 points or 0.5% at 27,046. The S&P 500 slid 0.3% to 3,037, pulling back from a record set in the previous session. The Nasdaq Composite fell 0.1% to 8,292.

The major averages posted solid gains for October despite Thursday's losses. The Dow and S&P 500 gained 0.3% and 0.5%, respectively, for the month. The Nasdaq ended October up 0.6%.

Bloomberg News reported Thursday, citing unnamed sources, that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report added Chinese officials are concerned about President Donald Trump's "impulsive nature" and the risk of him backing out of any kind of deal.

Trade bellwether stocks Caterpillar dropped 1.8% while Micron Technology slid 0.9%. Trade sensitive sectors like the industrials, materials, financials and energy performed poorly.

Recent highflyers and IPOs continue to perform poorly. Twilio fell 10%, Etsy dropped 15%, Wayfair declined 18%, and Lyft declined 6%.

The 2-yr yield dropped ten basis points to 1.52%, and the 10-yr yield dropped 11 basis points to 1.69%. The U.S. Dollar Index fell 0.4% to 97.30. WTI crude fell 1.6%, or $0.90%, to $54.18/bbl.