Day Traders Diary

9/6/23

The major averages closed lower once again continuing the sluggish start to the new month. The Dow Jones Industrial Average fell 198 points or 0.57%. The S&P 500 fell 31 points or 0.7% while the Nasdaq Composite is down 148 points or 1%.

Tech and bonds weighed on the markets. Treasury yields jumped as the yield on the 2-year Treasury note rose 5 basis points, trading above the 5% level. Tech stocks also took a hit. Nvidia fell 3% while Apple dropped 3% on news the Chinese government is asking government officials to move away from Apple.

The price of oil rose to its highest level since November after Saudi Arabia and Russia extended their voluntary supply cuts.

On the economic front, investors assessed fresh U.S. trade deficit data, which showed the trade shortfall rise less than expected in July. A new beige book, which summarizes economic activity, will be released in the afternoon.

As of Wednesday morning, traders are pricing in a 93% chance that the Fed holds rates steady at its policy meeting later this month, according to CME Group's FedWatch tool.

On the earnings front, drone and robotics maker AeroVironment (AVAV) is jumped 20% on strong Q1 results. AeroVironment also received an upgrade and price target hike to $128 a share.