Day Traders Diary

4/15/20

The major averages dropped on dismal economic data, weak bank earnings and lower oil prices due to concerns over the coronavirus's impact on the U.S. economy. The Industrial Average dropped 445 points, or 1.9%, to 23,504. The S&P 500 slid 2.2% to 2,783 while the Nasdaq Composite closed 1.4% lower at 8,393. Both the Dow and S&P 500 had their worst session since April 1.

Bank of America closed more than 6% lower on the back of disappointing earnings. Citigroup fell more than 5%. Energy, materials and financials were the worst-performing sectors in the S&P 500, dropping more than 4% each.

Retail sales during the month of March plunged a record 8.7%, according to a report from the Commerce Department published Wednesday. That was the largest one-month decline since the department began tracking the series in 1992.

The energy sector declined 4.7% after the EIA projected a 9.2 mb/d decline in oil demand in 2020. WTI crude futures settled just below $20.00/bbl, losing 1.3%, or $0.27, to $19.95/bbl.

UnitedHealth was a notable standout after the Dow component reported better-than-expected earnings results. Its outperformance limited the decline in the health care sector down 0.5%.

Separately, airline stocks finished mixed after the companies reached individual agreements with the government for payroll relief. The airline stocks closed basically unchanged.

Longer-dated U.S. Treasuries exhibited strength in a textbook trade given the negative economic data and decline in stocks. The 2-yr yield declined two basis points to 0.20%, and the 10-yr yield declined 11 basis points to 0.64%. The U.S. Dollar Index increased 0.7% to 99.57.