Day Traders Diary
The major averages opened higher, but the rally fizzled due to weakness in the banks and retail space. The Dow Jones Industrial Average opened modestly higher, but closed down 174 points or 0.5% led by weakness in the retail and healthcare space. The S&P 500 fell 12 points while the Nasdaq Composite clung to an 8 point again.
After the open, the retail sector started to drag the averages lower. Macy's fell 14% on earnings. Dicks Sporting Goods took it on the chin down 24% on margin pressure. Under Armour took a hit yesterday on earnings and closed down again today. Nike was dragged lower for the nineth straight day. Lowes is one of the few retailers higher on better than expected numbers and reaffirmed guidance.
The tech-heavy Nasdaq was able to post gains even as the yield on the 10-year Treasury reached its highest level since November 2007. Tech shares historically struggle in a high-rate environment, making the tandem rise with yields on Monday more striking for Wall Street.
Investors are keeping a close eye on Nvidia's earnings due Wednesday. Its shares rose more than 8% Monday, making it one of the largest tech gainers. The company is largely seen as a bellwether on the AI-boom and sentiment.
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