Day Traders Diary

6/5/24

The major averages rose together led by economic data and tech stocks like Nvidia once again. The Dow Jones rose 96 points or 0.25% even with weakness in Cisco, J&J and UnitedHealth Group. The S&P 500 rose 62 points while the Nasdaq shot up 330 points or 2%.

AI-darling Nvidia continues its march higher up 4%, crossing the $3 trillion market cap. The stock will split 10 for 1 on Friday. There has been some speculation that Nvidia could be added to the Dow Jones sometime after the stock split. The manufacturer for Nvidia, Taiwan Semi is up 6% on an upgrade.

The other news of the day comes from the economic front as the private payroll data from ADP showed hiring slowed to 152,000 jobs last month, far below the 175,000 economists polled by Dow Jones expected. The markets liked the news, but bonds did not react much as the 10-year Treasury fell 2 basis points to 4.308%. The 2-year Treasury yield fell 2 basis points as well to 4.76%.

The odds that the Federal Reserve would lower its current 5.25%-5.50% fed funds rate as soon as September did increase, based on futures contracts traded on the CME.

On the earnings front, Hewlett Packard Enterprise rose 10% after topping Wall Street estimates. CrowdStrike rose 11% on stronger-than-expected earnings and guidance. Tesla was modestly higher after disclosing better than expected sales in China.