Day Traders Diary

10/16/20

The Dow Jones Industrial Average closed higher to end the week snapped a three-day losing streak thanks to strong retail sales data. The Dow closed up 112 points or 0.4%, at 28,606. The S&P 500 eked out a small gain, closing at 3,483 while the Nasdaq Composite ended the day down 0.4% or 42 points at 11,671.

The major averages were broadly higher for most of the session. However, they gave up most of their gains in the final hour of trading as Big Tech shares sold off. Both Dow and the S&P 500 notched their third straight weekly gain and the Nasdaq posted a four-week winning streak.

U.S. retail sales jumped 1.9% in September, easily topping a Dow Jones estimate of 0.7%, according to data released by the Commerce Department. Excluding autos, sales were up 1.5%. That's also better than a 0.4% estimate.

Boeing shares led the Dow higher, rising 1.9% after Europe's aviation regulator said Boeing's 737 Max jet is safe to fly again. Meanwhile, Pfizer jumped 3.8% after the company said it would apply for emergency use of its coronavirus vaccine as soon as it reaches certain safety milestones that it expects to have in late November. Meanwhile, Amazon shares dipped 1.9% amid concerns over the sales from company's Prime Day event.

Health care and utilities were the best-performing sector in the S&P 500, jumping nearly more than 1% each. Pfizer jumped 3.9% on news they may file for emergency use authorization for its COVID-19 vaccine by the end of November.

The energy sector and Dow Jones Transportation Average were laggards today amid disappointing reactions to mixed earnings reports from Schlumberger, J.B. Hunt Transport and Kansas City Southern.

Boeing was a bright spot after the EU regulators deemed the Boeing 737 Max safe to fly again. Too bad no one can fly.

U.S. Treasuries finished the session on a lower note. The 2-yr yield increased two basis points to 0.15%, and the 10-yr yield increased one basis point to 0.74%. The U.S. Dollar Index declined 0.2% to 93.71. WTI crude futures declined 0.3%, or $0.11, to $40.85/bbl.