Day Traders Diary
The major averages closed modestly lower, but off thier lows for the day following weak economic data out of China and disappointing guidance from chipmaker, Broadcom. Broadcom closed down 5% blamed geopolitical uncertainty and export restrictions on Huawei Technologies for the disappointing outlook, fueling worries that the industry has not bottomed yet. The Philadelphia Semiconductor Index dropped 2.5%.
Slower industrial output growth in China has also stirred lingering global growth concerns that have been reflected in the underperformance of the S&P 500 information technology (-0.9%), energy (-0.8%), and industrials (-0.6%) sectors. Losses have been kept in check, though, as the market anticipates China is likely to keep stimulating its economy.
The utilities (+0.8%), real estate (+0.4%), and communication services (+0.3%) sectors are the top performing sectors today.
On the IPO front, the online pet retailer, Chewy came public today jumping 50% from its IPO price. Chewy now sports a market cap of $14 billion while generating $3.5 billion in sales. PetSmart acquired Chewy in 2017 for a reported $3.35 billion and with remain a majority shareholder. PetSmart is looking pretty smart today.
For the week, the Dow and S&P 500 were both modestly higher up 0.6% while the Nasdaq gained 0.9%. The major averages are on pace to notch their second consecutive weekly gain.
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