Day Traders Diary

12/9/19

The major averages fell for the first time in four sessions as investors await news on the China trade deal before new tariffs are expected.  

The Dow Jones Industrial Average fell 105 points or 0.4%. The S&P 500 pulled back 0.3% while the Nasdaq slid 0.4%. Apple fell 1.4% to lead the Dow lower. The major averages rose to near-record highs late last week, boosted a U.S. jobs report that easily topped analyst expectations. The world's largest economy added 266,000 jobs in November, according to data released by the Labor Department.

The Dow rallied more than 300 points on Friday while the S&P 500 came back to post a slight weekly gain. Friday's strong session came after the market got off to a slow start last week.

Other key events this week will include policy decisions from both the Fed and ECB, a UK election, and reports on consumer prices and retail sales for November. Strikingly, the CBOE Volatility Index spiked 16.5% to 15.86, as demand for downside protection increased in anticipation for any disappoints.

Corporate news didn't move the needle, but M&A activity and analyst recommendations did contribute to some notable stock reactions.

In the biotech space, ArQule rose 103% after agreeing to be acquired by Merck. Synthorx rose 170% agreed to be acquired by French company Sanofi. Both deals came at handsome premiums.

Apple suppliers Qorvo rose 1.7% and Skyworks Solutions rose 1.8% on upgrades from Bank of America/Merrill Lynch.

U.S. Treasuries finished the session relatively unchanged. The 2-yr yield declined one basis point to 1.62%, and the 10-yr yield declined one basis point to 1.83%. The U.S. Dollar Index declined 0.1% to 97.64. WTI crude declined 0.4%, or $0.23, to $58.97/bbl.