Day Traders Diary

5/8/24

The major averages closed mixed once again with the Dow Jones extending its winning streak to six days even as we saw weakness in tech. The Dow added 172 points or 0.4% led by strength in Boeing, JP Morgan Chase and Amgen.  The S&P 500 fell 3 cents closing where it started at 5187. The Nasdaq Composite fell 29 points.

The weakness in tech came from Intel down 2% after the chipmaker lowered its second-quarter revenue guidance. Tesla was also lower down nearly 2% as U.S. prosecutors are looking into whether the company committed wire fraud as part of a probe into Tesla's Autopilot systems. Uber fell 5% after the ride-share company posted a surprising net loss and weaker-than-expected bookings revenue. Rival, Lyft however was higher by 7% as management sees a road to recovery.

The yield on the 10-year Treasury rose 3 basis points to 4.492%. The yield on the 2-year Treasury was quiet at 4.8%. Federal Reserve commentary. Boston Fed President Susan Collins said in remarks on Wednesday that the Fed's interest rate policy will likely need to remain at its current level until inflation is moving "sustainably" toward the central bank's 2% target.

The price of oil was up a percent after U.S. commercial crude stockpiles declined by 1.4 million barrels in the first week of May, according to official data from the Energy Information Administration. The decline was a surprise compared to industry data that indicated a 509,000 barrel buildup. Oil prices have fallen more than 7% since reaching their April highs when traders bid up prices on fears that Iran and Israel would go to war.