Day Traders Diary

9/27/24

The major averages closed mixed to end the week helped by better than expected inflation data out this morning. The  Dow Jones Industrial Average rose 137 points or 0.33% to a new high. The S&P 500 fell 7 points or 0.13% while the Nasdaq fell 70 points or 0.39%.

All three averages extended their gains to a third week, with the S&P 500 and the Dow rising around 0.6% while the Nasdaq advanced nearly 1%.

The 10-year Treasury fell 3.5 basis points to 3.75%. The 2-year Treasury fell 5.6 basis points to 3.56% as August's personal consumption expenditures price index increased just 0.1%, matching expectations from economists polled by Dow Jones. The index also increased 2.2% at an annualized pace, below the 2.3% forecast. These numbers will help give the Fed more room to cut rates.

A steepening of the yield curve will help the banks and financials in general.

Tech and chips had a bad day, but a good news as Micron reported strong earnings Wednesday night. Nvidia took a hit after China encouraged domestic companies to use AI chips from domestic companies other than Nvidia.

Material stocks had the best weekly performance for the year up 3.4$ as China initiated new stimulus package to rival the panic. Casino stocks in Macua like Wynn Resorts also had a great week. Wynn rose 7% on an upgrade.

Commodities tied to China also performed well. Freeport-McMoRan, the copper producer rose 15% on the week.

Gold and Bitcoin continue their recent rally.

So much for September being a bad month for the markets.