Day Traders Diary

1/15/20

The major averages finished higher once gain following the signing of the U.S. and China phase one trade agreement. The Dow Jones Industrial Average gained 91 points, or 0.3% above 29,000 for the first time. At its session high, the Dow rose as much as 187 points, or 0.7% while the S&P 500 and Nasdaq gained as much as 0.5% each. The S&P 500 and Nasdaq closed modestly higher.

The U.S.-China trade agreement includes provisions to curb intellectual property theft along with forced technology transfers. It also increases Chinese purchases of U.S. products. Investors had been eagerly awaiting the signing of the so-called phase one trade agreement as the conflict between the world's largest economies has dragged on for nearly two years.

The trade deal does not remove existing U.S. tariffs on Chinese imports and leaves questions as to how the terms of the agreement will be enforced.

The corporate earnings are starting to roll in. Bank of America fell 1.8% while Goldman Sachs dipped 0.2% on earnings. Target dropped 6.6% following disappointing holiday sales numbers.

The Philadelphia Semiconductor Index fell 1.2% amid some profit-taking interest, with shares of Taiwan Semi down 3.2% ahead of earnings tomorrow morning.

U.S. Treasuries ended the session on a higher note as part of a defensive-oriented trade. The 2-yr yield and the 10-yr yield declined three basis points each to 1.55% and 1.79%, respectively. The U.S. Dollar Index declined 0.2% to 97.23. WTI crude declined 0.8%, or $0.44, to $57.86/bbl.