Day Traders Diary


The major averages closed fixed mixed once again as the Dow Jones Industrial Average extended its rally to an eight straight day. The Dow closed up 125 points or 0.32% led by strength in McDonalds, JP Morgan Chase, Caterpillar and Unitedhealth Group. The S&P 500 rose 8 points while the Nasdaq Composite fell 5 points.

Consumer sentiment data released Friday morning reflected a big uptick in inflation expectations, throwing some cold water on the market. The preliminary May reading for the University of Michigan's consumer sentiment index came in at 67.4, far below a Dow Jones estimate of 76 and marking its lowest reading in about six months. The yield on the 10-year Treasury added more than 5 basis points to 4.50%. The 2-year Treasury yield rose by 5 basis points to 4.85%.

The tech space led the weakness after Akamai Tech dropped 11% on weak guidance for the second quarter and the full year. The company did announce a $2 billion share buyback. Apple, Google, Tesla and Amazon were all modestly lower today. Unity Software was down 10% on lackluster earnings.

The chip space was higher after Taiwan Semi provided an update to their quarter. Taiwan Semi closed up 4% while Nvidia was up a percent.

On the earnings front outside tech, Victoria Secrets was up 5% on earnings. Dutch Brothers rose 9% on an upgrade and earnings earlier in the week. 3M was higher on an upgrade.

The Diamond of the day goes to Novavax up 98% after a COVID-19 vaccine licensing deal with Sanofi where Sanofi will invest $1.2 billion in the struggling biotech. The stock is down 97% from the highs set during the pandemic.

In the commodity space Gold, Silver and Copper were higher while oil and Bitcoin were lower.

For the week, the Dow posted a 2.16% gain, its best week since December and its fourth positive week in a row. The S&P 500 and the Nasdaq Composite both posted a third consecutive winning week, rising 1.85% and 1.14%, respectively.

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