Day Traders Diary
The major averages continuing their strong start to September by taking profits out of high-flying names like Apple and Tesla and snapped up shares in more beaten-down parts of the market. The Dow Jones Industrial Average finished up 454 points, or 1.6%. The S&P 500 gained 1.5% while the Nasdaq Composite rose 0.98%. Both the S&P 500 and Nasdaq hit record highs, with the Nasdaq topping 12,000 for the first time.
Coca-Cola rose more than 3% along with IBM to lead the Dow higher. However, both of those stocks are still down year to date. Apple and Tesla slid 2.7% and 6.9%, respectively, giving back some of their recent sharp gains.
Wall Street was coming off a banner session in which the S&P 500 logged its best first trading day of September since 2010, according to Bespoke Investment Group.
In Washington, congressional leaders appear to be far apart in negotiations for another relief package, but the Trump administration announced on Tuesday evening that the Centers for Disease Control and Prevention would invoke its authority to halt evictions through the end of the year.
The moves Wednesday also followed conflicting news in the fight against the coronavirus, with Swiss pharmaceutical firm Roche announcing that it would launch a new rapid antigen test in Europe by the end of the month. The company said it would apply for an emergency use authorization from the U.S. Food and Drug Administration.
However, an expert panel convened by the U.S. National Institute of Health said that a plasma treatment touted by President Trump and FDA head Stephen Hahn does not appear to be effective against Covid-19 based on current research.
Interestingly, optimism in the growth outlook might not have played a role in today's gains. For instance, the U.S. Treasury curve experienced some curve-flattening activity due to an uptick in longer-dated Treasuries. The 2-yr yield increased two basis points to 0.13%, while the 10-yr yield declined two basis points to 0.65%. The U.S. Dollar Index increased 0.4% to 92.67.
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.