Day Traders Diary

7/16/24

The major averages closed in the green led by the Dow Jones Industrial Average surging nearly 2% following a slew of earnings. The Dow jumped 742 points or 1.85% to new highs led by UnitedHealth Group, Dow, Caterpillar and Home Depot. The S&P 500 rose 35 points or 0.64% while the Nasdaq closed in the green up just 36 points.  

Earnings are coming out fast and furious. Bank of America, Morgan Stanley, PNC and Charles Schwab all reported. Only Schwab closed in the red down 10% on lackluster sales and guidance.  

In the healthcare space, UnitedHealth Group jumped 6% not far from a 52-week high following earnings that were mixed and not spectacular. All the HMOs were up 2% or more.The small cap-focused Russell 2000 was the diamond again up 3.5%, rallying for a fifth straight day of gains.

Ironically, the technology-heavy Nasdaq was a laggard again with the AI darling Nvidia falling 1.6%. Big cap tech was modestly lower in general.  

Treasuries were lower today with the yield on the 10-year Treasury sliding 6 basis points to 4.16% and the 2-year Treasury yield falling 3 basis points to 4.4% on economic data and Fed Chairman Powell comments. Traders now see 100% odds of a rate cut in September, according to the CME FedWatch tool.