Day Traders Diary

11/11/20

The major averages closed mixed once again as money rotated back into techs and Covid-19 related stocks. The Dow Jones Industrial Average closed down 23 points or 0.08%. The S&P 500 closed up 27 points or 0.77% while the Nasdaq Composite jumped 232 points or 2%.

The tech space had a nice rebound with Apple gaining 2.7%. Netflix climbed 1.8%. Facebook and Amazon rose 1% and 2.8%, respectively. Alphabet traded 0.7% higher, and Microsoft was up by 2.7%.

Disney, meanwhile, dropped more than 3% to lead the Dow lower. JPMorgan Chase traded more than 1% lower.

Wednesday's moves came after strong back-to-back strong sessions for the Dow that were sparked by Pfizer and BioNTech's announcement about their more than 90% effective Covid-19 vaccine.

The news caused investors to move out of technology names and stay-at-home stocks and into cyclical stocks that hinge on a recovering economy.

Tech and consumer discretionary, the worst-performing sectors this week, outperformed on Wednesday. Tech was up by more than 2%, and consumer discretionary gained 1.2%.

The best-performing sectors this week, energy and financials, lagged. Energy was down more than 1%, while financials lost 0.8%. Energy remained up more than 15% week to date despite Wednesday's decline; financials remain 8% higher over that time period.

Separately, Goldman Sachs remained bullish on equities, forecasting the S&P 500 to hit 4300 by the end of 2021. The call was based on expectations that a COVID-19 vaccine would reopen the economy and a divided government would provide stability and no increase in taxes.

The U.S. Treasury market was closed for Veterans Day, leaving the 10-yr yield at 0.98% following yesterday's settlement price. The U.S. Dollar Index increased 0.3% to 92.99. WTI crude futures increased 0.3%, or $0.12, to $41.49/bbl.