Day Traders Diary

1/10/20

The major averages pulled back on Friday, reversing from all-time highs, as investors digested weaker-than-expected jobs data to end a volatile week full of geopolitical concerns. The Dow Jones Industrial Average closed down 133 points or 0.5% at 28,823. Earlier in the session, the 30-stock average broke above 29,000 for the first time ever. The S&P 500 lost 0.3% to end the day at 3,265 while the Nasdaq Composite also dipped 0.3% to 9,178.

The major averages still posted solid weekly gains despite Friday's muted performance. The S&P 500 and Nasdaq were up 0.9% and 1.8%, respectively, for the week. The Dow was up 0.7% week to date.

Boeing shares dropped 1.9% on Friday to lead the Dow lower. Boeing supplier Spirit Aerosystems fell 4% after eliminating 2,800 jobs.

 The financials and industrials sectors dropped at least 0.7% each to drag down the S&P 500. The defensive-oriented sectors performed well like real estate, utilities and health care.  

Six Flags dropped 17.8% after lowering guidance. KB Home dropped 3% after missing revenue estimates. Meanwhile, rival Lennar keeps pushing higher. Lennar rose 3% after hiking their dividend. GrubHub dropped 6% after denying reports that it was seeking a sale.

In M&A activity, Dermira rose 4% after agreeing to be acquired by Eli Lilly for $18.75 per share or $1.1 billion in cash.

U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield declined one basis point to 1.56%, and the 10-yr yield declined three basis points to 1.83%. The U.S. Dollar Index declined 0.1% to 97.36. WTI crude fell 0.9%, or $0.55, to $58.99/bbl.