Day Traders Diary

6/7/24

The major averages pulled back into the close after the S&P 500 rose to a fresh intraday record high even though the May jobs report out this morning came in stronger-than-expected, dampening hopes of a rate cut any time soon. The Dow Jones Industrial Average fell 87 points or 0.22%. The S&P 500 fell 5 points while the Nsadaq fell 39 points or 0.23%  

Bond yields rose on the jobs data out this morning. The yield on the 10-year Treasury jumped 15 basis points to 4.43%. The 2-year Treasury yield also rose 15 basis points to 4.8%. Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April's 175,000 gain. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago. However, the unemployment rate did tick up to the 4% level.

Tech stocks were quiet for a second straight day as Nvidia was modestly lower ahead of its 10 for 1 stock split on Monday. Chips and big cap techs were quiet overall. Microsoft fell even though it received an upgrade. DocuSign fell 4% on an earnings report today.

GameStop surprised investors by reporting earnings this morning ahead of the return of Keith Gill, "Roaring Kitty" to YouTube causing dramatic volatility. The stock fell 39% on the day.

All three of the major averages notched a winning week. The Dow posted a 0.29% gain, while the S&P 500 added nearly 1.32% and the Nasdaq advanced 2.38%.