Day Traders Diary

6/6/24

The major averages closed mixed once again with the Dow Jones rising 78 points thanks to strength in Amazon, Boeing and Apple. The S&P 500 declined a point while the Nasdaq fell 14 points.

A quiet day as we await economic data tomorrow, but on the earning front we saw retailer, Lululemon rise 4% on a better than expected first quarter. Costco was modestly higher on earnings. A number of other retailers were not so lucky as Five Below fell 10% while Big Lots fell 18% due to slow sales and a quarterly loss. Victoria Secrets fell 6% on a quarterly miss.

Outside the retail space, tech and Nvidia finally took a breather. Most of the chip space was lower today. Nvidia will split 10 for 1 for Mondays business.

Bonds were quiet today as the yield on the 10-year Treasury ticked up one basis point to 4.288%. The 2-year Treasury yield added than 1 basis point to 4.73%.

Tomorrow is the big nonfarm payrolls report for May, with investors on the hunt for signs of a weakening labor market, which could support rate cuts from the Federal Reserve. Economists polled by Dow Jones expect a jobs gain of 190,000.

Today, the European Central Bank cut rates for the first time since 2019 on Thursday, raising the pressure on the Federal Reserve to potentially lighten its policy that many see as too restrictive