Day Traders Diary

7/1/20

The major averages closed mixed to start the third quarter with market sentiment getting a lift from positive coronavirus vaccine news and strong U.S. economic data. The Dow Jones Industrial Average fell 77 points or 0.3%. At one point, the Dow was up more than 200 points. The S&P 500 climbed 0.5% while the Nasdaq Composite advanced 0.95% to a record high.

A study of a coronavirus vaccine candidate being developed by Pfizer and BioNTech showed the drug created neutralizing antibodies. The results were released online but have not been reviewed by a medical journal yet. If the vaccine gets regulatory approval, it expects to make up to 100 million doses by year-end and "potentially" more than 1.2 billion by the end of 2021. Pfizer shares jumped 3.2%.

Arizona on Wednesday reported nearly 4,900 additional coronavirus cases and 88 new deaths, a record-high single-day jump. California also reported a record spike in new coronavirus cases. Apple, meanwhile, erased earlier gains and closed 0.2% lower after announcing it will re-close 30 more stores do to the resurgence in virus cases. Amazon and Netflix led the techs higher, rising 4.4% and 6.7%, respectively. FedEx was the best-performing stock in the S&P 500, rallying 11.7% on the back of stronger-than-forecast earnings.

White House health advisor Dr. Anthony Fauci warned Tuesday that if the outbreak continues at its current pace, daily new cases could surpass 100,000 new infections per day.

U.S. Treasuries finished with modest losses, pushing yields higher across the curve. The 2-yr yield increased two basis points to 0.17%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 97.15. WTI crude declined 1.2%, or $0.48, to $39.76/bbl.