Day Traders Diary

5/11/23

The major averages are mixed once again with the Dow dropping over 200 points while the tech sector and big cap tech remains resilient. The Dow Jones Industrial Average fell 267 points or 0.8%. The S&P 500 fell 11points while the Nasdaq inched up 14 points.

Disney shares fell more than 8% after the media giant released its fiscal second-quarter results. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The company also announced it would take on impairment charges of $1.5 billion to $1.8 billion as it removes more content from its streaming platforms.

Investor worry over regional banks once again flared up. PacWest Bancorp  the latest troubled bank in focus, said Thursday in a 10Q filing that deposits fell 9.5% last week. PacWest shares dropped another 22% Thursday, and the bank said it had access to $15 billion in immediate liquidity, if needed.

The producer price index, the Federal Reserve's preferred inflation gauge that measures wholesale prices, increased just 0.2% in April. Economists polled by Dow Jones estimated PPI advanced 0.3% last month. The PPI data follows the consumer price index report from Wednesday, which showed inflation rose 4.9% year-over-year, below expectations.

Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, the Department of Labor said on Thursday. The latest jobless data was the highest reading since Oct. 30, 2021.