Day Traders Diary

9/30/20

The major averages rose in volatile trading to close out a volatile month. The Dow Jones Industrial Average gained 329 points, or 1.2%, to 27,781, after jumping 573 points at its session high. The S&P 500 rose 0.8%, or 27 points, to 3,363 while the tech-heavy Nasdaq Composite climbed 0.7%, or 82 points, to 11,167.

Stocks cut gains in the final hour of trading after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal during a more than 90-minute meeting. The pair will continue talks as they try to craft a fifth package that could pass both chambers of Congress. The market soared earlier in the session after Mnuchin said lawmakers were giving the bill "a serious try."

Sentiment was helped by better-than-expected economic data. ADP's monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey. Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.

Stocks sensitive to the economic recovery, including banks and cruise operators, were among the biggest winners on Wednesday. Goldman Sachs gained more than 2%, while Citigroup rose 1.6%. Norwegian Cruise popped more than 3%.

Still, major averages suffered their first monthly declines since March partly due to a tech-led correction earlier in September. The S&P 500 is down 3.9% this month, while the Dow and the Nasdaq Composite have fallen 2.3% and 5.2%, respectively, in September.

Investors digested the first debate between President Donald Trump and Democratic nominee Joe Biden Tuesday evening, which turned out to be particularly vicious with constant interruptions and insults. Wall Street remained concerned that it will be a drawn-out electoral process that could hit the market.

The 2-yr yield increased two basis points to 0.13%, and the 10-yr yield increased three basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 93.84. WTI crude futures rose 2.6%, or $1.01, to $40.21/bbl.