Day Traders Diary
The major averages were dragged lower on Wednesday amid rising bond yields, while names tied to an economic recovery provided the market with some support. The Dow Jones Industrial Average ended the day near its session low dropping 121 points, or 0.4%, to 31,270. The S&P 500 fell 1.3% to 3,819 led by tech and consumer discretionary. The Nasdaq Composite slid 2.7% to 12,997 as Apple, Amazon, Microsoft and Alphabet all dropped more than 2%. Netflix shed 5%.
President Joe Biden said late Tuesday that the U.S. will have a large enough supply of coronavirus vaccines to inoculate every adult in the nation by the end of May. That would be two months ahead of schedule. The vaccine rollout is seen as key part in getting Americans back to work and for the economy to recover.
Growing optimism over the vaccine rollout sparked a rally in cyclical stocks and reopening plays. American Airlines popped 3.4%, while Carnival and Norwegian Cruise Line jumped 3.9% and 6.3%, respectively. The energy sector rose 1.4%.
On the data front, private companies added 117,000 new jobs in February, according to a report Wednesday from payroll processing firm ADP. Economists polled by Dow Jones expected 225,000 private jobs were added last month.
Meanwhile, the pace of growth in the services side of the U.S. economy decelerated in February. The ISM Nonmanufacturing Index showed a reading of 55.3 for last month, down 3.4 percentage points from January and below the 58.7 Dow Jones estimate.
Biden agreed to limit the number of people who will receive a new round of stimulus checks as part of the $1.9 trillion coronavirus relief package set to pass in the coming days, a Democratic source said Wednesday.
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.