Day Traders Diary

6/3/24

The major averages closed mixed to start the month of June as investors await more economic data out at the end of the week. The Dow Jones Industrial Average fell 115 points due to weakness in Dow, 3M, Caterpillar and American Express. The S&P 500 rose 5 points while the Nasdaq rose 93 points.

The strength in the markets so far today is in tech like Nvidia, Apple and Meta and also the drug space. Nvidia rose 4% after announcing a new suite of artificial intelligence chips, succeeding the previous model by just three months. Nvidia was upgraded with a $1500 price target.

In the drug space, Bristol rose 1.5% on positive drug data. GlaxoSmithKline fell 8% even though they showed positive drug data for cancer treatment.

The yield on the 10-year Treasury is down 8 basis points to 4.43%. The 2-year Treasury yield is down 6 basis points to 4.83% as the U.S. manufacturing sector showed signs of shrinkage last month, with the ISM manufacturing index measuring 48.7 in May, which sent yields lower. A reading below 50 is an indication of a contraction. Investors also await private payroll data on Thursday from ADP followed by a key jobs report on Friday.

Oil prices take a hit down 3% as OPEC+ extended production cuts through the end of 2025.

Wall Street is coming off a strong May, with all three major averages notching their sixth positive month in seven. The Nasdaq rose 6.9%, its best month since November 2023.