Day Traders Diary

11/6/19

The major averages closed virtually unchanged Stocks closed Wednesday's session little changed, struggling to sustain the recent rally that drove the market to record highs, as traders worried about U.S.-China trade discussions.

The Dow Jones Industrial Average closed down 7 points at 27,492. The S&P 500 was also barely changed, closing at 3076. The Nasdaq Composite declined nearly 0.3% as big tech including Amazon, Microsoft, Apple and Facebook all underperformed. 

The markets sold off after reports President Donald Trump and Chinese leader Xi Jinping won't meet to sign a trade deal until December.

The meeting between Trump and Xi could be delayed as the two sides still need to decide on the terms and a venue, a senior administration official told CNBC. Trump is scheduled to be in London for a gathering of NATO leaders on Dec. 3 - 4, and a potential signing could happen nearby before or after that visit, CNBC reported. Reuters first reported the meeting postponement.

Corporate earnings are winding down with 75% of the S&P 500 companies reporting above analysts' expectations so far. However the more recent IPOs continue to struggle. Match Group was down 2% to a six-month low on earnings today. Yesterday is was Uber, Peloton and Shake Shack that disappointed.

In M&A news, Xerox is making an unexpected offer to buy HP. HP surged more than 6%.Walgreens Boots Alliance initially opened higher on speculation they want to go private. The stock did close down 3%.

U.S. Treasuries finished the session on a higher note, having received increased demand following the latest trade update. The 2-yr yield declined three basis points to 1.60%, and the 10-yr yield declined five basis points to 1.81%. The U.S. Dollar Index remained little changed at 97.95.