Day Traders Diary

11/27/24

The major averages drifted lower in the afternoon as lackluster earnings hit the tech sector the day before Thanksgiving. The Dow Jones Industrial Average fell 138 points after trading up over 100 points this morning. The S&P 500 fell 22 points while the Nasdaq declined 115 points on weak tech earnings.

Dell Technologies started off the weakness, falling 12% even though earnings were strong. Sales rose 9.5% to $24.37 billion, missing revenue guidance. The company also provided conservative guidance although their AI server sales rose over 50%. In the tech space, HP was also down 12% on earnings. Workday, Autodesk and CrowdStrike are lower as well on earnings. Retailer, Nordstrom fell 10% on lackluster earnings.

Ambarella bucked the trend in the tech and chip space, up 6% on strong earnings and fourth quarter guidance finding a, "wave of new products" from partnerships with car makers. The rest of the chips were lower on cautious analyst comments on Nvidia and thier Blackwell chip.

The yield on the 10-year Treasury fell around 7 basis points to 4.23%. The 2-year Treasury yield dipped more than 5 basis points to 4.20% as the personal consumption expenditures price index, or PCE, rose 0.2% in October and 2.3% on an annualized basis, in line with expectations from economists polled by Dow Jones. Excluding food and energy, the so-called core measure increased 0.3% month over month and 2.8% compared with a year ago, also matching consensus forecasts.

The price of oil was lower on ceasefire news between Israel and Hezbollah ahead of Sunday's OPEC+ meeting.

Gold rebounded nearly 1% while Bitcoin jumped 5% after a sharp, nearly 10% pullback from the $100,000 level.

Yesterday, the Dow and S&P 500 rose to all-time highs. The Dow is now tracking to end the week 1.4% higher, while the S&P 500 is slated for gains of 0.4%. Including today's decline, the Nasdaq Composite is down about 0.2% on the week.

For the month of November, the Dow has climbed more than 7%, on track for its biggest monthly gain of 2024. The S&P 500 and Nasdaq have each jumped more than 5%.