Day Traders Diary

5/30/24

The major averages fell today due to weak earnings from Dow component, Salesforce and nervousness ahead of inflation data out tomorrow. The Dow Jones Industrial Average fell 330 points or 0.8%. The S&P 500 fell 31 points while the Nasdaq declined 183 points.

Salesforce was the big loser down 20%, its worst day since 2004, after missing revenue expectations for the fiscal first quarter. The company's earnings and revenue outlook for the second quarter also fell short of the Street's estimates. Some analysts are calling the move an overreaction. However, most software stocks are lower in sympathy.

Plenty of earnings out today besides Salesforce. Retailers trading lower on earnings include American Eagle, Dollar General, Kohls and Hormel Foods. Foot Locker was a stand out diamond up 16% after surprising Wall Street with better than expected earnings and strong guidance for the summer months thanks to better than expected traffic of late. Expectations were low for the company as the stock is still negative for the year.

The 10-year Treasury yield fell more than 7 basis points to 4.548% today sliding back below the 4.6% for the first time in a month. The 2-year Treasury yield is down to 4.925% after sliding 6 basis points.

 Commodities like oil and gold were down over a percent. Bitcoin was up nearly 2%.

For the holiday-shortened trading week, the S&P 500 is down a percent, the Nasdaq Composite is down half a percent putting both averages on track to snap five-week winning streaks. The Dow has tumbled more than 2% this week for its second straight losing week.

Despite the rocky week, the indexes are all on track to end the month higher. The Nasdaq Composite and S&P 500 have jumped more than 7% and 4%, respectively, in May. The Dow has risen just around 1% in the month.