Day Traders Diary
The major averages slipped on Tuesday after reaching fresh all-time highs as traders weighed the possibility of even more fiscal stimulus being approved by Congress. The Dow Jones Industrial Average closed down 68 points lower, or 0.2%, at 30,335. The S&P 500 dipped 0.2% to 3,727 while the Nasdaq Composite fell by 0.4% to 12,850. Tuesday's decline snapped a three-day winning streak for both the Dow and S&P 500.
Senate Majority Leader Mitch McConnell blocked an attempt by Senate Minority Leader Chuck Schumer to fast-track a bill that would increase direct payments to Americans to $2,000 from $600. That bill was passed by the House late Monday.
President Donald Trump had previously called for a $2,000 direct payment to Americans. On Tuesday, he tweeted: "Unless Republicans have a death wish, and it is also the right thing to do, they must approve the $2000 payments ASAP."
Senate Republicans however have opposed larger direct payments despite Trump's demands. However, several GOP senators have expressed support for the $2,000 checks.
Despite Tuesday's slight pullback, stocks are heading into year-end with surprisingly strong gains. The S&P 500 is up 15.4% in 2020, and the Dow has risen 6.3%. The Nasdaq Composite, meanwhile, has surged 43.2% year to date as investors flocked into major tech names such as Apple, Amazon and Facebook.
Separately, Boeing rose modestly after their 737 MAX was flown commercially for the first time since March 2019 via American Airlines.
U.S. Treasuries finished little changed in a quiet trading session. The 2-yr yield increased one basis point to 0.13%, and the 10-yr yield was flat at 0.93%. The U.S. Dollar Index declined 0.4% to 90.00. WTI crude futures increased 0.7%, or $0.33, to $47.97/bbl.
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