Day Traders Diary

8/17/20

The major averages closed mixed with the S&P 500 closing just below all-time highs. The Dow Jones Industrial Average lagged, falling 85 points, or about 0.3%, to close at 27,844. The broader market index gained 0.3% to close at 3,381. The Nasdaq Composite advanced 1% to 11,129, hitting an all-time high.

Shares of Alphabet and Microsoft both rose at least 0.7% to lead the Nasdaq higher. Amazon, meanwhile, gained 1.1% after Reuters reported as the company looks to acquire or invest in cloud company Rackspace Technology. Chipmaker, Nvidia jumped 6% as they look to acquire or invest in British chip maker, ARM Holdings.

Wall Street continues to grapple with lingering concerns over stalled coronavirus stimulus negotiations and simmering U.S.-China tensions. Both Democrats and Republicans have indicated they are at a stalemate over a new stimulus package. Democrats have proposed to send more than $900 billion to states and municipalities in one bill. A counteroffer from the GOP did not include any additional aid for states and local governments.

Sentiment in the financial sector was pressured after a 13F filing revealed Berkshire Hathaway decreased positions in JPMorgan Chase and Wells Fargo in the second quarter. Notably, Berkshire added a new position in Barrick Gold.

U.S. Treasuries, as previously noted, had a decent outing, particularly on the longer-end of the curve. The 2-yr yield increased two basis points to 0.15%, while the 10-yr yield declined three basis points to 0.68%. The U.S. Dollar Index declined 0.3% to 92.81. WTI crude futures gained 2.2%, or $0.89, to $42.94/bbl.