Day Traders Diary

7/8/24

The major averages are quiet hovering around the unchanged level awaiting more economic data and earnings reports later this month. The Dow Jones Industrial Average is down 43 points after rising 200 points this morning. The S&P 500 is unchanged while the Nasdaq is up 28 points.

The S&P 500 is coming off its fourth positive week in the last five amid ongoing optimism that easing inflation could lead to a Federal Reserve rate cut as soon as September.

The June consumer price index, which will be released Thursday, could bolster those hopes if the headline number shows a slight improvement. Producer price index data will be released Friday.

Last week, labor data reflected a slightly cooling jobs market, spurring expectations of a rate cut. Although the U.S. economy added more jobs in June than anticipated, there was also an unexpected rise in the unemployment rate, to 4.1% from 4%. Traders are currently expecting two interest rate cuts in 2024, with the first in September, according to the CME FedWatch Tool.

Today, AI stocks are performing well as Corning provides upbeat guidance. Corning is up 11% to a 52 week high as the best performing S&P 500 component after saying their earnings will be at the high end of guidance while raising sales guidance thanks to strong demand for their AI products and AI Companies demanding Corning products.

Nvidia, AMD, Intel are up 2% or more. Super Micro Computer is jumping 8%.Big cap tech is quiet today. 

Plenty of stocks are lower today. The banks are modestly lower. JP Morgan was downgraded. Nike and Chipotle are both down over 2%. Oils are lower with the price of oil.

Later in the week we will see earnings start with PepsiCo and Delta Air Lines posting  results on Thursday. On Friday we will see a slew of major banks, including Citigroup and JPMorgan Chase.