Day Traders Diary
The major averages pulled back to end the week after making new highs for the year. Worries over the coronavirus' impact on the Chinese economy outweighed the release of stronger-than-expected U.S. jobs data. The Dow Jones Industrial Average finished down 277 points or nearly 1%, at 29,102. The S&P 500 dipped 0.5% to 3,327 while the Nasdaq Composite slid 0.5% to close at 9,520. Those losses snapped a four-day winning streak for the major average. The major averages did close higher for the week with the S&P 500 gaining more than 3%, its best weekly performance since early June. The Dow climbed 3% for the week while the Nasdaq gained 4%.
China's National Health Commission on Friday confirmed 31,131 cases of the deadly pneumonia-like virus in the country, with 636 deaths. These numbers have stoked worries about how China's economy slowing here in the first quarter. Chinese economic slowed to 6.1% growth in 2019 down from 6.8% in 2018.
The major averages reached record highs on Thursday boosted by China's decision to halve tariffs on a slew of U.S. products. The world's second-largest economy announced it would halve tariffs on $75 billion worth of U.S. imports on Thursday.
Notable earnings gainers today include Uber up 9.5%, AbbVie up 5.9% and the T-Mobile US up 3.2%. The laggards include Take-Two Interactive down 11.9%, Canadian Goose down 4% and Wynn Resorts down 5%. The latter two were down due to the Chinese coronavirus.
In other corporate news, FedEx rose 4.7% after saying it is optimizing last-mile residential deliveries that will drive costs lower. Intercontinental Exchange rose 2.8% after saying it will no longer explore strategic opportunities with eBay. eBay closed down 47%.
U.S. Treasuries finished on a higher note amid the negative bias in the stock market. The 2-yr yield declined six basis points to 1.39%, and the 10-yr yield declined seven basis points to 1.58%. The U.S. Dollar Index increased 0.2% to 98.69. WTI crude fell 1.2%, or $0.62, to $50.35/bbl.
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