Day Traders Diary

8/20/24

The major averages were quiet and modestly lower after an eight day rally that followed a sharp correction to start August. The Dow Jones Industrial Average fell 61 points. The S&P 500 fell 11 points while the Nasdaq dropped 59 points.

This week, investors are readying themselves for the Federal Reserve's annual Jackson Hole Economic Symposium, where Chair Jerome Powell is scheduled to give remarks Friday. Tomorrow we will get the minutes from the central bank's July policy meeting.

The yield on the 10-year Treasury closed down 4 basis points to 3.827%. The 2-year Treasury was down 6 basis points to 4.009%.

Markets continue to fully price in a Fed rate cut in September, though they have slashed the odds of a 50 basis-point, half a percentage point, reduction to just 26.5%, according to CME Group's FedWatch Tool.

On the earnings front, cybersecurity company Palo Alto Networks is up 8% on strong earnings and a $500 million stock buyback. To the downside, home improvement retailer Lowe's is lower by a percent after lowering its annual profit outlook, noting an expected slowdown in consumer spending. Boeing is another dog down 4% after halting tests on their 777x plane due to engine mount issues.

The price of oil is lower and been drifting lower on softer demand out of Asia and hopes of further talks in the Middle East about a cease-fire.

Today's mute response or move comes after the S&P 500 and Nasdaq Composite posted their eighth straight positive sessions. That was a first for both since late 2023.