Day Traders Diary
The major averages rebound thanks to the major tech names like Apple and Microsoft even as coronavirus cases keep rising at a record pace. The Dow Jones Industrial Average closed 177 points higher, or 0.7%, at 26,067. Earlier in the day, the Dow was up more than 200 points and briefly turned negative. The S&P 500 climbed 0.8% to 3,169 while the Nasdaq Composite advanced 1.2% to 10,492, notching a record closing high.
Apple rose 2.3% to a record high after a Deutsche Bank analyst hiked his price target on the stock. Microsoft shares gained 2.2% and Netflix climbed nearly 2%. Amazon closed 2.7% higher. The S&P 500 tech sector ended the day up 1.6% and posted an all-time closing high.
Names that would benefit from the economy reopening were under pressure for most of the day before rebounding in the final hour of trading. United fell as much as 3.8% after the company warned 36,000 employees about potential job cuts. The stock recovered to close just below the flatline.
Wednesday's move higher comes as the U.S. reported a record daily spike of more than 60,000 coronavirus cases on Tuesday. The total number of confirmed U.S. cases now totals more than 3 million, according to Johns Hopkins University.
Coronavirus-related deaths have risen to more than 131,000 in the U.S., according to Hopkins. As cases and deaths rise, data compiled by Apple Maps shows driving activity is slowing down across the country, which could be a warning sign for the economic comeback.
Biogen rose 4% after submitting their application to the FDA for its Alzheimer's drug. Twitter jumped 7% on news they are working on a subscription service. National General jumped 65% after agreeing to be acquired by Allstate for $4 billion in cash.
U.S. Treasuries finished near their flat lines in a tight-ranged session. The 2-yr yield was unchanged at 0.16%, and the 10-yr yield was unchanged at 0.65%. The U.S. Dollar Index declined 0.4% to 96.47. WTI crude increased 0.8%, or $0.31, to $40.91/bbl, even as the EIA reported an unexpected build in weekly crude inventories.
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