Day Traders Diary
The major averages staged a nice turnaround following dismal U.S. unemployment data this morning. The Dow Jones Industrial Average finished up 377 points or 1.6%, after falling more than 450 points earlier in the day snapping a three-day losing streak. The S&P 500 climbed 1.15% while the Nasdaq rose 0.91%.
Bank of America and JPMorgan Chase gained more than 4% each. Citigroup traded 2.8% higher while Wells Fargo advanced over 8%. Oil prices climbed 9% to $27.56 per barrel, leading the S&P 500 energy sector up by 0.7%.
Still, the major averages remained on track for their worst weekly performance since March 20. The S&P 500 and Dow have both lost more than 3.5% this week while the Nasdaq has fallen 3%.
Stocks sold off earlier in the day after the Labor Department reported a total of 2.981 million Americans filed unemployment insurance during the week ending May 9. The number came in worse than expectations of 2.7 million new claims, according to economists polled by Dow Jones.
The new claims also brought the coronavirus crisis total to nearly 36.5 million over the past two months, by far the biggest loss in U.S. history. A record of 20.5 million jobs were lost in April alone as the coronavirus-induced economic shutdown tore through the economy, sending the unemployment rate skyrocketing to 14.7%.
U.S. Treasuries finished mixed and little changed. The 2-yr yield increased one basis point to 0.16%, while the 10-yr yield declined two basis points to 0.63%. The U.S. Dollar Index increased 0.1% to 100.31.
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