Day Traders Diary

12/30/19

The major averages pullback from all-time highs on Monday as investors took off some risk on the second-to-last trading day of a historic year for equities. The Dow Jones Industrial Average dropped 183 points, or 0.6%, to 28,462 while the S&P 500 fell 0.5%, or 18.73 points, to 3,221. The two indices suffered their worst day in four weeks. The Nasdaq Composite fell 0.6%, or 60.62 points, to 8,945 after topping 9,000 for the first time ever last week. The Dow's year-to-date gain was trimmed to 22%.

Some of the biggest winners of the year, including Microsoft, Visa and J.P. Morgan, all finished the session in the red as investors took profits. Microsoft and Visa were among the top three gainers in the Dow this year, rallying 55% and 42%, respectively.

U.S. equities have enjoyed a strong rally in December, with the main indexes hitting record highs last week amid year-end optimism. The S&P 500 notched five straight weeks of gains, rising 28.5% in 2019 through Monday's close. The benchmark is within reach of a historic year, sitting about one percentage point away from having its best year since 1997. As it stands now, it will be the best year since 2013.

In the automotive space, Tesla fell 3.6% pulled back from record territory amid a cautious outlook from Cowen. Chinese competitor NIO jumped 53% following its earnings results.

U.S. Treasuries ended the session mixed, contributing to some curve-steepening activity. The 2-yr yield declined two basis points to 1.56%, while the 10-yr yield increased two basis points to 1.90%. The U.S. Dollar Index declined 0.2% to 96.78. WTI crude declined 0.2%, or $0.10, to $61.64/bbl.