Day Traders Diary

3/10/20

The major averages closed sharply higher on a wild trading day on the prospects of fiscal stimulus to curb slower economic growth stemming from the coronavirus outbreak.

The Dow Jones Industrial Average closed up 1,167 points or 4.9%, at 25,018. Tuesday's gains for the Dow cut the index's losses from Monday in half. Earlier in the day, the 30-stock average was down 160 points. The S&P 500 closed up 4.9% at 2,882, notching its best day since Dec. 26, 2018. The Nasdaq Composite also advanced 4.9% to 8,347.40.

Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all rose more than 4.8%. JPMorgan Chase and Home Depot led the Dow higher, rising more than 7% each. Tech and financials were the best-performing sectors in the S&P 500, rising at least 6% each. Energy gained more than 4%.

Separately, oil rebounded from its worst day since 1991 after reports indicated that Russia could be interested in discussions to stabilize oil markets. The price of WTI crude rose by 10.2%, or $3.16, to $34.25/bbl. The energy sector (+4.7%) increased slightly less than the broader market.

Airline stocks were among the biggest beneficiaries from President Trump's comments. Delta Air Lines (DAL 45.47, +1.95, +4.5%), American Airlines (AAL 17.00, +2.25, +15.3%), and United Airlines (UAL 52.56, +5.78, +12.4%) announced capacity cuts due to weakened travel demand, but shares rallied on the potential for government aid.

The 2-yr yield finished 15 basis points higher at 0.47%, and the 10-yr yield finished 25 basis points higher at 0.75%. The U.S. Dollar Index rose 1.6% to 96.45.