Day Traders Diary

12/5/19

The major averages closed modestly higher as investors digested strong employment data while they monitored the latest news from the U.S.-China trade negotiations.

The Dow Jones Industrial Average gained 28 points, or 0.1% to close at 27,677. The S&P 500 advanced 0.16% to 3,117 while the Nasdaq Composite gained less than 0.1% to close at 8,570. The major averages oscillated between slight gains and losses throughout the day as they struggled to find direction.

Nike led the slight gains for the Dow, rising 2.2% after a Goldman Sachs analyst upgraded the stock. Apple also rose more than 1%. Communications services and tech rose 0.4% each to drive the S&P 500 marginally higher.

U.S. weekly jobless claims dropped 203,000 last week, the Labor Department said. That's below a Reuters estimate of 215,000. The print was the lowest in seven months. The report quelled fears stemming from a disappointing private payrolls number released Wednesday. It also comes a day before the government's monthly nonfarm payrolls report.

The biotech space also had some noteworthy moves. Sage Therapeutics fell 59% tanked after a Phase 3 study did not meet its primary endpoint for major depressive disorder, while Aurinia Pharma rose 78% surged following a positive Phase 3 result for a lupus drug. Biogen rose 3% provided a well-received update for its Alzheimer's drug.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased one basis point to 1.59%, and the 10-yr yield increased two basis points to 1.80%. The U.S. Dollar Index declined 0.3% to 97.38. WTI crude finished little changed at $58.45/bbl as OPEC+ convened in Vienna to discuss production cuts.