Day Traders Diary

12/6/24

The major averages were mixed today following the November jobs data that came in slightly better than expected, but not so hot as to deter the Federal from cutting rates later this month. The Dow Jones Industrial Average fell 123 points to close at 44,642.

The broad market S&P 500 climbed 15 points or 0.25% to 6,090, a new high. The Nasdaq advanced 159 points or 0.81%.

The S&P 500 and Nasdaq rose for the third straight positive wee, rising 0.96% and 3.34%, respectively. The Dow was negative on the week.

The November labor report, released Friday morning, revealed that nonfarm payrolls increased by 227,000 last month, above the Dow Jones estimate of 214,000 and marking a huge hike from October's upwardly revised gain of 36,000. The unemployment rate nudged up to 4.2%, as expected. The fed funds futures are reflecting an 85% likelihood of another rate cut in two weeks to 85%, according to the CME Group's FedWatch Tool.

The yield on the 10-year Treasury fell 2 basis points to 4.15%. The 2-year Treasury yield declined 4 basis points to 4.09%.

Tech led the rally once again as Tesla rose 5% to a new 52 week high. Amazon and Meta rose 2% on the day. Software had a good day with Oracle, Adobe and Palantir up over 2%. Chips were quiet as Nvidia fell nearly 2%.

Oil stocks and the price of oil were lower today. Chevron  was a dog down 2% management said they will be cutting capital spending by about a billion dollars in 2025 while also announcing a tax restructuring charge of $700 million to $900 million for the fourth quarter.

Healthcare had a tough week as a top executive at United healthcare was murdered this week in New York City.

A standout in the retail space today was Lululemon, stretching higher thanks to strong earnings and guidance. China was a bright spot for them with sales up 27%.

Bitcoin was a stand out this week, rising nearly 2% closing about $100,000 for the first time.