Day Traders Diary

11/14/19

The major averages closed virtually unchanged again with the Dow Jones closing down a point and the S&P 500 down 3 points. The Nasdaq closed up 2 points even as tech bellwether, Cisco Systems dropped 7% to a 10-month low following earnings. 

Walmart opened higher by 2% lifting the averages thanks to earnings, but then fell into the red by the close. Cannibas company, Canopy Growth dropped 14% after falling 4% yesterday on disappointing earnings. Here's a bad stat, Canopy paid more in stock base compensation, then they generated in sales.

Apple fell nearly a percent on a downgraded to Sell from Hold at Maxim Group. Kraft Heinz also fell by 5% on a downgraded to Sell from Neutral at Goldman, which certainly dragged the stock lower.

Talks between the U.S. and China are thought to have hit a snag over agricultural purchases. The Wall Street Journal reported on Wednesday that Beijing is resisting requests from the White House to curb tech transfers as well as enforcement mechanisms. China is also reportedly wary about committing to specific farm purchases from the U.S.

Chinese Ministry of Commerce spokesman Gao Feng said overnight that both countries are holding "in-depth" discussions about a phase one deal, but noted that the rolling back of some tariffs is key to reaching an agreement.

The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined six basis points to 1.82%. The U.S. Dollar Index declined 0.2% to 98.17.

Demand for Treasuries may have been driven in part by continued misgivings about a "Phase One" trade agreement, which the U.S. and China are struggling to complete, according to a new report from The Financial Times. The stock market, though, remained undeterred by any negative-sounding trade news that doesn't come directly from President Trump, China, or top negotiators.