Day Traders Diary

12/10/19

The major averages dipped on Tuesday as a looming U.S.-China trade deadline dampened investor sentiment. The Dow Jones Industrial Average closed down 27 points or 0.1% at 27,881. The S&P 500 lost 3 points while the Nasdaq Composite dipped 5 points.

China and the U.S. have until Sunday to come strike a so-called phase one trade deal. If an agreement wasn't reached by then, new U.S. tariffs will take effect.

The Wall Street Journal reported the U.S. plans to delay slapping China with additional tariffs as both sides try to work out the agreement. U.S. negotiators have also asked Chinese officials to commit to some agricultural purchases up front before moving forward with a deal, the report added. Meanwhile, China wants its agricultural purchases to be proportional with the amount of tariffs the U.S. rolls back.

The U.S. is also reportedly pushing for a quarterly review of the promised purchases. The report initially sent stock futures higher earlier in the day, but the excitement did not last long.

Most S&P 500 sectors wavered near their unchanged marks throughout the session. The real estate sector fell 0.7% while the materials fell 0.6%. The energy and health care sectors rose modestly.

In corporate news, AutoZone rose 6.9% while Stitch Fix rose 4.8% following earnings. Netflix fell 3% on a downgrade while Peloton dropped 5.7% on a research report that said the stock was only worth $5 a share.

U.S. Treasuries finished the session mixed. The 2-yr yield increased three basis points to 1.65%, and the 10-yr yield was unchanged at 1.83%. The U.S. Dollar Index declined 0.2% to 97.45. WTI crude increased 0.4%, or $0.24, to $59.21/bbl.