Day Traders Diary
The major averages finished higher, but sentiment was kept in check with a key part of the U.S. yield curve inverting even further, exacerbating fears of an impending recession. The Dow Jones Industrial Average closed up 258 points or 1% at 26,036. The S&P 500 climbed 0.7% to 2,887 while the Nasdaq Composite advanced 0.4% to end the day at 7,856. Energy stocks, Chevron and Exxon Mobil contributed to the Dow's gains, rising 0.8% and 0.7%, respectively.
The S&P 500 energy sector jumped 1.4%, led by a 10.6% surge in Cimarex Energy, as U.S. crude prices surged more than 1%. Oil jumped after the Energy Information Administration said U.S. crude inventories plummeted by 10 million barrels last week. Crude gained settled at $55.78 per barrel. Consumer stocks such as Tiffany and Kohl's also rose 3% and 3.4%, respectively. Tiffany posted quarterly earnings that beat analyst expectations.
Trading volumes remained subdued ahead of the U.S. Labor Day holiday on Monday.
The closely watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points Wednesday. The move extended losses from the previous session when the spread registered its lowest level since 2007.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.