Day Traders Diary
The major averages rose on Thursday, building on a three-day winning streak, as investors assessed a new batch of corporate earnings and solid economic data. The Dow Jones Industrial Average gained 332 points or 1.08%. The S&P 500 climbed 41 points or 1.09% supported by energy and financials. The Nasdaq Composite rose 167 points or 1.23%.
A better-than-expected jobless claims report helped boost sentiment. First-time claims for unemployment insurance totaled 779,000 for the week ended Jan. 30, below the 830,000 estimate from economists surveyed by Dow Jones.
EBay jumped more than 10% after beating on both the top and bottom lines and issuing a rosier-than-expected forecast for the first quarter. PayPal gained more than 6% after strong quarterly results, while Qualcomm slipped over 7% after reporting revenues below consensus estimates for its fiscal first quarter.
Apple rose 1.5% after CNBC reported that it is close to finalizing a deal with Hyundai-Kia to produce driverless cars. News that the two may be close to a deal comes after Hyundai said in January that it was in preliminary talks with the iPhone maker to develop a car.
The moves on Wall Street followed three straight positive sessions for the major averages as the speculative retail trading mania faded. So far this week, the blue-chip Dow has gained more than 3%, while the S&P 500 and the Nasdaq have risen 3.6% and 4.5%, respectively. GameStop, the poster child of the buying frenzy, has fallen more than 80% this week alone.
The Cboe Volatility Index, known as the VIX, dropped sharply as the market recovered from last week's losses. The fear gauge fell from its 30-plus level at Friday's close to around 22.9 Wednesday, posting its largest three-day decline ever, according to FundStrat.
Many on Wall Street are optimistic that the vaccine rollout, coupled with easy monetary policy and potentially more fiscal support, will sprout stronger growth in earnings and drive the market to new highs.
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