Day Traders Diary

2/21/24

The major averages closed mixed after pulling back for a third day in a row as traders look ahead to Nvidia's latest quarterly earnings report. The Dow Jones Industrial Average rose 48 points after initially falling 95 points. The S&P 500 rose 6 points after falling 14 points on the open. The Nasdaq Composite fell 49 points after dropping over 105 points after the open.

The selling continued in the tech space led by Nvidia. Nvidia will have a blockbuster quarter, but concerns are surrounding the high valuation as the stock has risen 230% over the past year. The stock fell 2% today and down 7% in the last week. A Nvidia supplier, Super Micro Computer fell 6% today and is down 24% in the last week.

Elsewhere in tech, Palo Alto Networks sank 28% after the cybersecurity company cut its full-year revenue guidance. SolarEdge Technologies fell 12% after missing sales estimates and weak guidance. Keysight Tech dropped 6% on earnings.

One tech modestly higher was Amazon as they will be added to the Dow Jones replacing Walgreens Boots Alliance. Walgreens fell 2% on the day.

On the earnings front, a few stocks are higher. Toll Brothers was a diamond up 3% on earnings. Analog Devices is higher as well on earnings.

On the bond front, Treasuries are modestly lower ahead of Federal Reserve's  minutes form the January meeting, seeking further insight on where the central bank stands on rates.