Day Traders Diary

6/27/24

The major averages were higher, but quiet as second quarter earnings started last night with chipmaker, Micron. The Dow Jones Industrial Average is up just 36 points with strength in Saleforce.com and Amazon. The S&P 500 is up 5 points while the Nasdaq Composite rose 53 points.

The Nasdaq was up even as Micron drops 6% on earnings. Earnings were actually really good easily beating expectations as sales rose 81% year over year. However, guidance was just inline and after a big run up, investors were expecting more. Nvidia was down in sympathy. Most of the chips were lower. AMD was modestly higher. The rest of the tech space looks good. Amazon was up 2% to a new high. Software stocks also look good with Adobe, Salesforce and Palo Alto Networks all up 3% or more.

The banks were quiet today even as all 31 of the big US banks pass the annual Fed Stress Test with sufficient capital. In the drug retail space, Walgreens Boots Alliance was down 25% after missing earnings and lowering full year guidance reflecting a challenging pharmacy industry with consumers pull back. Walgreens will also look into closing underperforming stores and more job cuts. CVS was down 4% in sympathy.

Treasury yields were lower as initial jobless claims edged lower. Demand for long-lasting big-ticket items was better than expected while the first-quarter economic growth rose a bit, according to the Commerce Department. The 10-year treasury yield was down 4 basis points to 4.28%. The 2-year treasury yield fell 4 basis points to 4.70%.