Day Traders Diary
The major averages pulled back to start the week as investors looked ahead to U.S.-China trade talks, which are set to begin later this week. The Dow Jones Industrial Average finished down 95 points, or 0.4% to 26,478. The S&P 500 dipped 0.5% to 2,938 while the Nasdaq Composite lost 0.3% to close at 7,
The Chinese officials are increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump. Vice Premier Liu He, who will lead negotiations for China, told dignitaries that his offer to the U.S. will not include commitments on reforming Chinese industrial policy or government subsidies. Investors are hoping for positive talks to create a catalyst for the markets.
Ten of the 11 S&P 500 sectors finished lower amid relatively light trading volume. In corporate news, Silicon Motion raised its third quarter revenue guidance, signaling that healthy demand for Apple's iPhone 11 is funneling through the supply chain. Silicon Motion was one of the few gainers in the Philadelphia Semiconductor Index. Uber was higher on an upgraded to Buy from Neutral at Citigroup. Labor talks between General Motors and the UAW were said to have taken a "turn for the worse" over the weekend. GM closed modestly lower.
U.S. Treasuries finished firmly lower, driving yields higher across the curve. The 2-yr yield increased seven basis points to 1.46%, and the 10-yr yield increased four basis points to 1.55%. The U.S. Dollar Index increased 0.2% to 98.97. WTI crude gave up an intraday gain to finish unchanged at $52.79/bbl.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.