Day Traders Diary

2/20/25

The major averages pulled back today following two days of all-time highs for the S&P 500 following a lackluster forecast from retail giant Walmart that prompted questions about the outlook of the economy. The Dow Jones Industrial Average fell 450 points, or 1%. The S&P 500 shed 26 points or 0.4% while the Nasdaq Composite dropped 93 points or 0.47%.

Dow member Walmart dropped 6.5% after earnings due to weak guidance for the first quarter and full year as consumers get more picky and buy more low margin products. Target and Costco fell in sympathy.

International markets continue to perk up. The Chinese Amazon, Alibaba rose 6% on strong earnings and sales as the Chinese economy slowly improves. Alibaba's investments in cloud and AI business are starting to pay off. Alibaba recently teamed up with Apple to bring AI features to their Chinese phones.

The 10 year Treasury fell 3 basis points to 4.50%, while the 2 year Treasury dropped a basis point to 4.27% on economic data and weak guidance from Walmart.

Oil prices rose for a three-day gain on Thursday on data showing gasoline and distillate drawbacks. There are also supply disruptions in Russia even as President Trump tries to end the Ukraine and Russian war.

Gold had a good day up over half a percent to $2955. Bitcoin also had a good day up 2%, but still in a range below $100,000.