Day Traders Diary

5/23/24

The major averages opened mixed, but fell into the red as even strong earnings from AI chipmaker, Nvidia were not enough today. The Dow Jones Industrial Average fell 605 points or 1.5% led by weakness in Boeing, Home Depot, Intel, Apple and 3M. The S&P 500 fell 39 points while the Nasdaq was down 65 points or 0.39%.

Chipmaker and artificial intelligence darling Nvidia surged 9%, sending shares above $1,000, after posting stronger-than-expected fiscal first-quarter results and announcing a 10-for-1 stock split. Nvidia's fiscal second-quarter revenue guidance of about $28 billion also beat consensus forecast of $26.61 billion, a sign that business is not losing any momentum. The stock is up over 100% year to date.

Nvidia's results initially lifted the chip sector higher including Super Micro Computer, Broadcom, AMD, Qualcomm, Micron and equipment makers Applied Materials, Lam Research and KLA Tencor. However, by the close, only Broadcom was higher.

Outside the tech and chip space, the broader market is weak. On the earnings front, VF Corp fell 2% after missing on earnings and sales. Live Nation fell 7% as the DOJ and several states file a lawsuit to break up the company for antitrust reasons for their monopolistic control over concert ticker sales.

The 10-year Treasury is higher by 6 basis points to 4.494%, while the 2-year Treasury yield is up 7 basis points to 4.952% as the services and manufacturing gauges for May both came in higher-than-expected and showed expansion in both sectors, according to purchase manager surveys from S&P Global released Thursday.