Day Traders Diary
The major averages pulled back modestly today on news of a second outbreak of the COVID-19 virus in Beijing, China. The Dow Jones Industrial Average fell 170 points at 26,119. The S&P 500 slid 11 points while the Nasdaq actually rose 14 points.
Airlines, cruise operators and retail — all groups that would benefit from the economy reopening — were under pressure on Wednesday. United, Delta and American Airlines all fell more than 1%. Carnival, Norwegian Cruise Line and Royal Caribbean slid 4.9%, 7.1% and 6.8%, respectively. Nordstrom fell 4.1% and Gap lost 3.7%.
Stocks were coming off sharp gains from Tuesday, helped by a bevy of bullish news, including a historic jump in retail sales. The U.S. government reported a record 17.7% increase in retail sales for May.
In corporate news, Oracle fell 5% after disclosing that customers within some of its hardest hit verticals postponed some orders. Norwegian Cruise Line fell 8% extended its suspension of cruise voyages through Sept. 30.
U.S. Treasuries ended the session slightly higher after trading in a narrow range. The 2-yr yield declined two basis points to 0.19%, and the 10-yr yield declined two basis points to 0.73%. The U.S. Dollar Index increased 0.2% to 97.13. WTI crude declined 0.9% to $37.93/bbl amid an unexpected increase in weekly crude inventories.
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.