Day Traders Diary

11/25/19

The major averages record another new high amid increasing expectations that China and the U.S. will reach a so-called phase one trade deal.

The S&P 500 and Nasdaq Composite hit all-time closing highs as they rose 0.8% and 1.3%, respectively. Both indexes also notched intraday records. The Dow Jones Industrial Average closed up 189 points, or 0.5%.

Tech was the best-performing sector in the S&P 500, rising 1.4%. Nvidia led the sector higher with a 4.9% gain. Intel's 2.1% advance led the Dow higher. The Nasdaq was lifted by a 1.8% rise in Apple shares while Amazon closed 1.6% higher.

Monday's gains come after the market's rally took a pause last week, with the S&P 500 snapping a six-week winning streak. The Dow fell for the first week in five while the Nasdaq ended a seven-week run.

Still, stocks have had a banner year. The S&P 500 is up 25% in 2019 and is headed for its biggest one-year gain since 2013. The Nasdaq, meanwhile, has rallied 30.1% year to date, on pace for its best yearly performance in six years. The Dow is up 20.3% year to date. That would be the 30-stock averages best annual gain since 2017.

There were two M&A deals on the market's radar. Charles Schwab rose 2% agreed to acquire TD Ameritrade for $26 billion in an all-stock transaction. Tiffany's rose 6% after LVMH agreed to acquire the luxury retailer for $16.2 billion in cash.

Strikingly, U.S. Treasuries finished the session on a higher note despite the risk sentiment displayed in the stock market. The 2-yr yield declined two basis points to 1.61%, and the 10-yr yield declined one basis point to 1.76%. The U.S. Dollar Index increased 0.1% to 98.32. WTI crude increased 0.2%, or $0.10, to $57.98/bbl.