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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Day Traders Diary

10/30/18

 
 

The S&P 500 gained 1.6% in Tuesday's session, in which it traded mostly in positive territory with all 11 S&P sectors closing higher. The notable gain reduces the benchmark index's month-to-date loss to 7.9% and puts it back into the green for the year (+0.3%).

Tuesday's price action in the S&P 500 oscillated with the volatility in large-cap technology stocks before finally taking a decisive swing upwards in the last hour of trading. The tech-heavy Nasdaq Composite, which had lost as much as 0.7% intraday, closed at its session high with a 1.6% gain.

Meanwhile, the Dow Jones Industrial Average added 1.8%, and the Russell 2000 added 2.0%.

The S&P 500's most heavily-weighted and battered information technology sector (+1.2%) kept the rally in check, as it was one of Tuesday's underperforming groups. Nevertheless, chipmakers supported the sector and outperformed the broader market, as the Philadelphia Semiconductor Index climbed 4.2%. Notable chipmaker NVDIA (NVDA 203.00, +17.38) jumped 9.4%.

Also providing the broader market some lift were the communication services (+2.5%), materials (+2.3%), energy (+2.3%), industrials (+2.0%), and consumer staples (+2.0%) sectors. Communication sector heavyweights Alphabet (GOOG 1036.21, +16.13, +1.6%) and Facebook (FB 146.22, +4.13, +2.9%) led the group higher, with Facebook rallying ahead of its earnings, which were due out following the closing bell.

Amazon (AMZN 1530.42, -8.46, -0.6%), however, continued to disappoint, as it was the only FANG member to post a loss. Shares of the e-commerce giant are down 25.0% from their September 4 record close.

In earnings, Dow components Pfizer (PFE 42.89, -0.34, -0.8%) and Coca-Cola (KO 47.63, +1.17, +2.5%) both reported better-than-expected profits. Pfizer, however, lowered its revenue guidance, while Coca-Cola reaffirmed its guidance. Additionally, former Dow component General Electric (GE 10.18, -0.98) fell 8.8% to its lowest level in nearly a decade after missing top and bottom line expectations and cutting its quarterly dividend from $0.12 per share to $0.01 per share.

Also, an honorable mention goes to Under Armour (UAA 23.23, +5.04) after it soared 27.7% following a better-than-expected earnings report.

In other markets, the U.S. Dollar Index climbed 0.4% to 97.00, touching its highest level since June 2017. Also, the yields on the 2-yr and 10-yr Treasury notes added two basis points each to 2.84% and 3.11%, respectively. Meanwhile, WTI crude decreased 1.2% to $66.24/bbl, hovering near a two-month low.

Overseas, Hong Kong's Hang Seng lost 0.9% on Tuesday, hitting a fresh low for the year, while China's Shanghai Composite gained 1.0% as the Chinese yuan reached its lowest level since mid 2008. Meanwhile, the Euro Stoxx 50 decreased 0.3% with Germany's DAX closing 0.4% lower.

Reviewing Friday's economic data, which included the Consumer Confidence Index for October and the Case-Shiller 20-City Index for August:

  • The Conference Board's Consumer Confidence Index, which revolves heavily around labor market and business conditions, increased to 137.9 in October (Briefing.com consensus 135.8) from a downwardly revised 135.3 (from 138.4) in September. The October reading is the highest since September 2000.
    • The key takeaway from the report is that strong employment growth continues to underpin favorable consumer attitudes about present-day conditions and the outlook.
  • The Case-Shiller 20-City Index for August rose 5.5% (Briefing.com consensus 5.9%), and the July increase was left unrevised at 5.9%.

Looking ahead, investors will receive the weekly MBA Mortgage Applications Index, the ADP Employment Change report for October, and the Q3 Employment Cost Index.

  • Nasdaq Composite +3.7% YTD
  • Dow Jones Industrial Average +0.6% YTD
  • S&P 500 +0.3% YTD
  • Russell 2000 -1.9% YTD

Headlines provided by Briefing.com

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.