Day Traders Diary
The major averages finished strong following the ugliest monthly jobs report ever. The Dow Jones Industrial Average traded up 450 points or 1.9%. The S&P 500 gained 1.6% while the Nasdaq Composite climbed 1.5%. Investors seem to be betting the worst of the coronavirus and its impact on the economy has passed.
For the week, the Dow and S&P 500 were up 2.5% and 3.5%, respectively, while the Nasdaq jumped 6%. All three averages posted their first weekly advance in three weeks.
The Labor Department said a record 20.5 million jobs were lost last month, adding the unemployment rate jumped to 14.7% from just 4.4%. Both the spike in job losses and the unemployment-rate surge are post-World War II records.
The S&P 500 has bounced more than 30% from its virus low and is just 15% away from a record. The Nasdaq Composite is more than 35% off its lows and is now up 1.3% for 2020. Gains from Facebook, Amazon Alphabet and Apple helped lift the index back into positive territory for 2020. At one point, the Nasdaq was down more than 25% year to date.
In the tech space, Apple rose 2% on plans to reopen stores in several U.S. states next week. Boeing rose 3% on plans to reopen its 737 MAX factory later this month. Uber rose 6% on earnings and encouraging comments on ride-sharing growth over the past three weeks. Walt Disney rose 3% as tickets for the reopening of their Shanghai theme park sold out within minutes.
Separately, U.S.-China tensions appeared to simmer today after the two sides reportedly pledged to make progress on their Phase One trade deal.
U.S. Treasuries retreated throughout the day and closed near their session lows. The 2-yr yield increased three basis points to 0.14%, and the 10-yr yield increased five basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 99.78. WTI crude futures rose 4.5%, or $1.06, to $24.71/bbl.
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