Day Traders Diary


The major averages entered the weekend on a mixed note. The S&P 500 settled higher by 0.9% while the Dow Jones Industrial Average ended with a slim gain of 0.1%.

The 30-stock Dow trailed behind the broader market as General Electric (GE 21.75, -0.92), McDonald's (MCD 99.92, -1.99), and International Business Machines (IBM 190.00, -17.15) pressured the price-weighted index after reporting earnings.

Of the three names, General Electric and McDonald's reported in-line results, but the two echoed the ongoing global growth concerns with their commentary. IBM, meanwhile, missed on earnings and reported revenue more than $1 billion below the Capital IQ consensus estimate. Shares of IBM tumbled 8.3% to surrender all of their year-to-date gains.

While the Dow spent the entire day in negative territory, the S&P 500 climbed steadily as some of the biggest laggards of the week appeared among today's leaders. Interestingly, the rally staged by the S&P stalled right near Monday's closing levels.

With the market rebounding broadly, seven of 10 sectors ended with gains of at least 1.0%. Leadership was mixed as cyclical and defensive groups displayed strength.

Energy, technology, and industrials were the only three sectors which lagged. The energy space ended flat as crude oil added 0.2% to $88.20.

Elsewhere, tech shares were pressured by IBM's disappointing earnings. In other news of note, Dell (DELL 13.40, -0.55) lost 3.9% after Blackstone ended its attempt to acquire the company.

Meanwhile, Google (GOOG 799.87, +33.96) and Microsoft (MSFT 29.76, +0.98) kept the sector from registering further losses after the two beat on earnings.

The industrial space was the third notable laggard as General Electric weighed. Excluding the industrial heavyweight, other sector components held up relatively well. The Dow Jones Transportation Average climbed 1.5% after sliding 3.3% during the first four sessions of the week.

Today's advance eased some fears of a looming correction as the CBOE Volatility Index (VIX 14.88, -2.68) slipped back to Tuesday's closing level. However, the near-term volatility index remains above 12.07, where it ended last week.

Today's volume total was aided by options expiration. As a result more than 900 million shares changed hands on the floor of the New York Stock Exchange.

There was no economic data of note released today.

On Monday, March existing home sales will be reported at 10:00 ET. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.