Day Traders Diary

3/6/24

The major averages bounced back although off the highs for the day following  one of the worst days of the year on Tuesday as tech and Bitcoin sold off or succumbed to profit-taking. The Dow Jones Industrial Average rebounded 75 points or 0.2%. The S&P 500 rose 26 points or 0.51% while the Nasdaq Composite jumped 91 points or 0.58%.

The AI chip stocks rebounded nicely with Nvidia and AMD up over 2.6% each. CrowdStrike rose 10% on a better-than-expected earnings and sales coupled with strong guidance. Palantir rose 9% after winning a significant army contract.

Outside tech, Nordstrom fell 16% after warning of potential sales declines in 2024. Foot Locker fell 29% on weak guidance for the full-year earnings.  The alcoholic beverage company, Brown Forman fell 7% following earnings and weak guidance. The recreational vehicle (RV) maker and seller, Thor Industries dropped 15% missing earnings estimates and lowering guidance.

Treasury yields were quiet as the Federal Reserve Chairman Jerome Powell, said the central bank is not quite ready to cut rates. The yield on the 10-year Treasury fell 4 basis points to 4.09%. The 2-year Treasury fell 2 basis point to 4.53%.

Wednesday's action comes after the three major averages notched a second consecutive day of declines. The Dow, S&P 500 and Nasdaq Composite all fell at least 1% in Tuesday's session.