Day Traders Diary

8/4/20

The major averages rose building on the previous session's strong gains, as lawmakers tried to make inroads on a new coronavirus stimulus package. The Dow Jones Industrial Average gained 164 points, or 0.6%, while the S&P 500 advanced a more modest 0.36%. The Nasdaq Composite, up more than 21% in 2020, staged a late-day turnaround to add a similar 0.35%, notching its fifth straight day of gains and a record close.

Tuesday's moves came as lawmakers worked to make inroads on a new coronavirus stimulus package.House Speaker Nancy Pelosi told Fox News on Tuesday she doesn't think a deal will be reached this week. Both sides have indicated they agree on another $1,200 stimulus check, but remain deadlocked on additional unemployment assistance.

Big Tech, which has led the major market indexes for much of the past week, traded mixed on Tuesday. Apple, one of the best performers in the Dow on Tuesday, finished the session up 0.6%. Netflix, meanwhile, gained 2.2%. Losses from the so-called FAANG group came from Facebook, which fell 0.85%, and Alphabet, which slipped 0.6%.

Microsoft cooled off from yesterday's TikTok-driven rally, while Advanced Micro Devices surged 9.5% to fresh record highs. AMD shot higher after Jefferies raised its price target on the stock to $95 from $86 on a view that it will capitalize on Intel's production issues.

Energy, real estate and staples were the best-performing sectors in the S&P 500, rising more than 1.3% each. Those gains were partially offset by declines health care and financials, the only two S&P sectors that posted declines during the session.

Gold rallied to new highs above $2000/ozt. The U.S. Dollar Index declined 0.1% to 93.27 after trading higher in the morning. Interest rates remains remained quiet with the 2-yr yield up one basis point to 0.12%, while the 10-yr yield fell five basis points to 0.52%.