Day Traders Diary

5/9/24

The major averages are performing well as the Dow Jones Industrial Average is on track for a seventh up day in a row as new economic data rekindles hopes for Federal Reserve rate cuts later this year. The Dow Jones Industrial Average is jumping 309 points or 0.8% led by Home Depot and Caterpillar. The S&P 500 is up 24 points or 0.5% while the Nasdaq Composite is up 52 points or 0.3%.

Fresh weekly jobless claims data came in at the highest level since August, raising expectations that central bankers might cut interest rates at some point this year. In addition to the unemployment data, a bond auction met with strong demand helped drive yields lower.  The yield on the 10-year Treasury is down 2 basis points to 4.461%. The 2-year Treasury yield dipped 3 basis points to 4.81%.

On the earnings front this morning, Airbnb was a dog down 6% on earnings on weak outlook for the second quarter. Chipmaker, Arm Holdings is down 2% despite strong earnings. Robinhood, Beyond Meat, Madison Square Garden and Roblox are lower on earnings. To the upside we have Costco, Warner Brothers Discovery are in the green thanks to earnings.

Commodities are having a good day as oil, gold, silver, copper and Bitcoin rise.