Day Traders Diary

8/3/23

The major averages closed lower once again continuing Wednesday's sell-off trend after Fitch downgraded the US debt as corporate earnings continue to flood in.The Dow Jones fell around 45 points or 0.38% to start the day. The S&P 500 is down 10 points after notching its worst day since April on Wednesday. The Nasdaq Composite is trying to close in the green. 

Yields popped, with the benchmark 10-year Treasury yield trading around 4.19% and near its highest level since November 2022. The higher interest rates are not helping the real estate and utility sectors. The Cboe Volatility index spiked to its highest level since June.

Many on Wall Street have also noted that the market's been long overdue for a breather, or slight correction, after hitting rally-mode for the better part of the year. Earlier in the week, both the S&P and Nasdaq notched their fifth straight month of gains.

The busy earnings week carried on, with chipmaker Qualcomm falling 9% on a fiscal third-quarter revenue miss and disappointing guidance. PayPal is down over 10% after posting in-line results and a decline in active accounts, while Expedia is plunging 15% as gross bookings fell short of expectations.

Thus far, nearly 79% of S&P 500 companies have issued quarterly reports, with about 82% beating expectations, according to FactSet. Earnings are also expected to fall about 5% from a year ago.