Day Traders Diary







The major averages rebounded, clawing back some of their losses from the previous session, as shares of major tech companies advanced ahead of their quarterly earnings reports. Sentiment also got a lift from better-than-expected economic data.

The S&P 500 climbed 1.2% and the Nasdaq Composite advanced 1.6%. The Dow Jones Industrial Average closed 139 points higher, or 0.5%.

The S&P 500 climbed 1.2% to 3,310.11 and the Nasdaq Composite advanced 1.6% to 11,185.59. The Dow Jones Industrial Average closed 139.16 points higher, or 0.5%, at 26,659.11. Thursday marked the first daily gain for the Dow in five days. The S&P 500 snapped a three-day slide.

Shares of Amazon and Apple rose 1.5% and 3.7%, respectively. Alphabet closed 3.1% higher and Facebook popped nearly 5%. Six of the 11 S&P 500 sectors gained more than 1%, including tech and communication services. Netflix, meanwhile, surged more than 5% after the company announced it will raise prices for U.S. subscribers.

U.S. gross domestic product for the third quarter expanded at a 33.1% annualized pace, its fastest growth ever. The reading came after a 31.4% plunge in the second quarter and was better than the 32% estimate from economists surveyed by Dow Jones.

Meanwhile, the number of first-time unemployment-benefits filers declined for a second straight week and hit its lowest level since March. Initial weekly U.S. jobless claims came in at 751,000 for the week ending Oct. 24, better than a Dow Jones estimate of 778,000.

Thursday's moves came a day after the market's biggest sell-off in months. Both the Dow and S&P 500 had their worst day on Wednesday since June. The Nasdaq had its biggest one-day drop since Sept. 8.

In other corporate news, Netflix rose 3% after increasing its prices for U.S. subscribers. Visa rose 2% after beating top and bottom-line estimates. Marvell fell 3% agreeing to acquire Inphi for $10 billion deal.

The positive showing in equities decreased interest in U.S. Treasuries and hedging activity. The CBOE Volatility Index fell 6.7% to 37.57. The 2-yr yield finished flat at 0.15%, while the 10-yr yield rose five basis points to 0.84%. The U.S. Dollar Index increased 0.6% to 93.92, which was one headwind for oil prices ($36.13, -1.32, -3.5%).

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