Day Traders Diary

8/12/24

The major averages are mixed, following one of the most volatile weeks for the year on an unwinding of a yen carry trade by hedge funds and other large money managers. The Dow Jones Industrial Average is down 200 points or 0.5%. The S&P 500 is unchanged while the Nasdaq is up 26 points or 0.13%.

Tech and Nvidia are leading the rebound up 4%. AMD and Micron are higher by 2%. The rest of the chip sector is quiet. The chip equipment makers are higher. Super Micro Computer is up 7% after dropping nearly 40% in the last month and a half. Apple is leading the big caps, up a percent.

On possible merger and activist news, Starbucks is up 3% as hedge fund Starboard Value purchased a stake in Starbucks looking to improve the coffee giant's stock price and business. KeyCorp is up 11% after Bank of Nova Scotia bought a $2.8 billion stake as an investment to get more exposure to the US. KeyCorp gets some much needed cash infusion with attractive terms.

 On the bond front, yields are quiet ahead of key inflation data. Tuesday we will get the producer price index while Wednesday's consumer price index report for July will be a pivotal cue as to whether the economy remains sound, or if investors will remain uneasy following July's weak nonfarm payrolls report which contributed to the recent sell-off.

Last Friday, the major averages rose to end the week but stopped just shy of a full recovery. The Dow finished the week lower by 0.6%, while the S&P 500 ended down just 0.04%, and the tech-heavy Nasdaq Composite finished with a 0.18% loss. Wall Street began last week with a sharp sell-off on growing concern of a U.S. economic growth slowdown.