Day Traders Diary

7/2/20

The major averages finish out the abbreviated week on an up note as investors cheer a bigger-than-expected increase in jobs in June as the economy tries to claw back from the coronavirus shutdown. The Dow Jones Industrial Average closed up 92 points or 0.4%, at 25,827. The Nasdaq Composite hit a record high, climbing 0.5% to 10,207. The S&P 500 also gained 0.5% to end the day at 3,130. Boeing contributed to the gains, rising 0.6% after the airplane maker completed recertification flights for its grounded 737 Max jet.

Thursday's gains led to strong weekly performances for the major averages. The Dow rose 3.3% this week and the S&P 500 climbed 4% in the same time period. It was the Dow and S&P 500′s biggest weekly gains since June 5. The Nasdaq posited its best weekly performance since May 8, jumping 4.6% this week. U.S. markets will be closed on Friday for the July Fourth holiday.

The June nonfarm payrolls increased by 4.800 million while the unemployment rate improved to 11.1% from 13.3% in May. Initial jobless claims for the week ending June 27 also decreased slightly to 1.427 million for its 13th straight decline.

Every sector in the S&P 500 was on pace to close in positive territory following the data, but a late fade in the market took several sectors into the red. The cyclical materials and energy rose over 1%. The real estate and communication services sectors closed lower.

The late-day selling was likely due to some profit-taking activity in front of the holiday weekend. At today's intraday high, the S&P 500 was up 5.2% for the week.

Tesla jumped 8% showing no signs of slowing down after the company pleased investors with its Q2 delivery data. TSLA shares rose 26% this week, including today's 8% gain.  

U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield was unchanged at 0.68%. The U.S. Dollar Index was also little changed at 97.22. WTI crude futures rose 1.7%, or $0.66, to $40.42/bbl.