Day Traders Diary

11/27/19

The major averages built on their record-setting run after the release of stronger-than-forecast economic data. The S&P 500 climbed 0.4% to 3153 while the Nasdaq Composite advanced 0.7% to 8705. The Dow Jones Industrial Average gained 42 points, or 0.2%, to 28,164. The averages posted fresh intraday records and notched their fourth straight day of gains.

Apple and Facebook contributed to Wednesday's gains, adding 1.3% and 1.5%, respectively. Amazon gained by 1.2% while Netflix rose 1.1%.

Consumer discretionary was the best-performing sector in the S&P 500 ahead of Black Friday, rising 0.9% as Under Armour shares outperformed. The apparel maker's stock jumped 6.2% after an analyst at Raymond James upgraded it to strong buy from outperform, noting the stock is "underrated" and an "underdog."

Strong economic data supported the gains. Durable goods orders rose 0.6% in October while economists expected a decline of 0.8%. Weekly jobless claims, meanwhile, fell to 213,000 from 227,000. Third-quarter GDP was revised to show growth of 2.1%. That's up from a previous reading of 1.9%.

Meanwhile, the Federal Reserve's summary of economic conditions — better known as the Beige Book showed the central bank saw the economy expanding modestly between October and mid-November.

The S&P 500 industrials sector was the lone holdout today amid losses as Boeing fell a 1% while Deere fell 4%. Boeing was pressured by news that the FAA will take control in re-certifying the airworthiness of each 737 MAX plane.

U.S. Treasuries ended the session on a lower note, sending yields higher across the curve. The 2-yr yield and the 10-yr yield both increased three basis points each to 1.62% and 1.77%, respectively. The U.S. Dollar Index increased 0.2% to 98.40. WTI crude declined 0.5%, or $0.30, to $58.11/bbl.