Day Traders Diary

1/8/20

The major averages rose today after President Donald Trump's comments on the Iran conflict eased worries of further escalation in U.S.-Iranian tensions. The Dow Jones Industrial Average gained 161 points, or 0.6% to close at 28,745. The Nasdaq Composite advanced 0.7% to 9,129, notching a new record high. The S&P 500 climbed 0.5% to 3,253.05 after hitting an intraday all-time high. In the final minutes of trading, the major averages came off their highs amid unconfirmed reports of explosions near Baghdad's Green Zone.

Trump said Iran appeared to be "standing down" after that nation attacked the Ain al-Asad airbase overnight. However, he added the U.S. will "immediately impose additional punishing economic sanctions on the Iranian regime." News of the attack sent stock futures tumbling overnight.

Oil futures fell from their highest levels of overnight trading, lowering concerns of a possible surge in fuel prices. WTI crude futures were up more than 4% at one point but settled down nearly 5%.

The president's comments pressured safe havens such as gold as investors flocked back into riskier assets. Gold futures for February delivery dropped 0.9% to settle at $1,560.20 per ounce. Overnight, the precious metal jumped to its highest level in about seven years.

Stock laggards included Boeing after a 737-800 jetliner crashed shortly after takeoff in Tehran, killing all 176 passengers on board. Walgreens Boots Alliance fell 5% after it missed earnings estimates.

Macy's rose 2% on better than feared holiday sales while Constellation Brands rose 3% which beat top and bottom-line estimates.

Shares of GrubHub climbed 12% after The Wall Street Journal reported the company is pursuing strategic options, including a possible sale.

U.S. Treasuries declined alongside the advance in equities, driving yields higher across the curve. The 2-yr yield rose four basis points to 1.58%, and the 10-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.3% to 97.30. Gold futures fell 0.9% to $1560.50/ozt.