Day Traders Diary

11/14/24

The major averages pulled back on comments from Federal Reserve Chair Jerome Powell signaling that economic strength could warrant some patience with future rate cuts.  The Dow Jones Industrial Average fell 207 points or 0.47%. The S&P 500 fell 36 points or 0.6% while the Nasdaq Composite fell 123 points or 0.64%.

The markets were in the red all day but took a leg lower after Federal Reserve Chairman Jerome Powell said in Dallas the central bank didn't need to be "in a hurry" to slash rates. The 10-year Treasury yield was flat at 4.44%, near its highest point since July. The yield on the 2-year Treasury was up 6 basis points to 4.34%. The October producer price index released this morning rose 0.2%, matching forecasts from economists polled by Dow Jones. Excluding food and energy ran faster than forecast.

The so-called "Trump Trades" are losing some steam as the market rally cools. Tesla was down 5% today, the Russell 2000 was down over a percent. In the tech space, Amazon, Google and Meta are lower. Software and server market is lower following Cisco System's earnings. Cisco is down 2% even though earnings and sales remain strong. Industrials are taking it on the chin as the sector was down 1.5%.

Disney was the diamond today as the magic is back at the mouse house. The stock is up 8% to new recent highs after beating estimates as revenues rose 6.3% to $22.57 billion. Disney provided upside guidance expecting double digit earnings growth as their streaming business improves.

The price of oil is quiet today, but gold was lower while Bitcoin fell nearly 3% drifting lower through the day.

Investors are  now deciding whether a postelection rally following Donald Trump's decisive victory last week still has room to run after powering the major averages to new milestones. The Dow closed above 44,000 for the first time on Monday, and both the S&P 500 and Nasdaq Composite notched new highs.