Day Traders Diary
The major averages closed lower as the markets continue to trade in a tight range. The 500-stock index fell 7 points or 0.18%. The Nasdaq Composite fell 13 points or 0.09%. The Dow Jones Industrial Average fell 152 points or 0.44%
Health care, communications and technology stocks led positive stocks with drugmaker Merck up 1.8%, Twitter up 1.7% and Adobe up 1.5%. Fox Corp. was the best performer in the S&P 500 with an advance of 2.3%.
Meme stock mania continued Wednesday with day traders now focusing their attention on Clover Health. The stock was up another 12% before rolling over following an 85% rally on Tuesday amid explosive trading volumes. Clean Energy Fuels rallied 30% Wednesday on no apparent news.
Investors await the next reading on inflation to gauge if higher price pressures are just temporary as the economy continues to rebound from the pandemic-induced recession.
The consumer price index for May is set to be released Thursday. Economists are expecting the CPI to rise 4.7% from a year earlier, according to Dow Jones. In April, the CPI increased 4.2% on an annual basis, the fastest rise since 2008.
Many on Wall Street believe the latest meme stock episode should stay contained to a handful of names, unlike the GameStop trading frenzy in January that had an impact on the broader stock market.
On the data front, job openings in April soared to a new record high, with 9.3 million vacancies coming online amid the economic recovery.
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