Day Traders Diary

10/21/24

The major averages closed mixed today following six straight up weeks as earnings season continues to dominate October. The Dow Jones Industrial Average fell 344 points led by weakness in the financials, Home Depot and Amgen. The S&P 500 fell 10 points while the Nasdaq rose 50 points.

Consumer and homebuilder stocks were among the biggest losers during midday trading as fears about higher-for-longer interest rates. The yield on the 10-year Treasury continues to creep higher, up 9 basis points to 4.12%. The yield on the 2-year Treasury was up 7 basis points to 4.02%.

No earnings this morning, but roughly one-fifth of S&P 500 companies are set to report this week. Thus far, the results have been mixed. Of the 14% of S&P 500 companies that have already posted third-quarter results, 79% have beaten expectations, according to FactSet's John Butters. Analysts have significantly downgraded their earnings expectations for the quarter in recent months.

Oil prices surged 2.5% after China cut its benchmark lending rate to spur demand in their country. Saudi Aramco CEO Amin Nasser said he remains "fairly bullish" on demand in the world's second largest economy. The U.S. benchmark finished last week more than 8% lower as traders increasingly believe Israel-Iran tensions will not lead to an oil supply disruption in the Middle East.

The Chinese rate cut did not seem to be help their domestic markets.

Tech was one of the few sectors higher today. Nvidia was up 2.8% along with a number of blue-chip techs like Apple and Google.

Today's moves come after both the S&P 500 and 30-stock Dow registered all-time highs on Friday for a sixth straight weekly advance for both averages.