Day Traders Diary

8/12/21

The major averages edged higher on Thursday, pushing both the Dow Jones Industrial Average and S&P 500 to fresh records during an otherwise tame session. The Dow rose 14.88 points to 35,499.85, a record close for the blue-chip index. The S&P 500 climbed 0.3% to 4,460.83, also a record. The Nasdaq Composite outperformed with a gain of 0.35% to end the day at 14,816.26.

Among the S&P sectors, health care and tech outperformed with gains of about 0.8% and 0.6%, respectively, while energy, industrials and materials stocks lagged. Salesforce and Apple were the best-performing stocks in the Dow while Home Depot and Visa each shaved off about 20 points.

The Labor Department reported Thursday morning that initial jobless claims declined slightly last week as the U.S. labor market continues its recovery from last year's recession. There were 375,000 claims last week, matching estimates. The prior reading came in at 385,000 claims.

The prices U.S. manufacturers and other businesses pay for labor, raw materials and other goods rose again in July. The government said its producer price index, excluding volatile food, trade services and energy components, rose 0.9% last month versus a forecast for a 0.5% gain.

The update to producer price inflation came a day after the Labor Department said consumer prices surged 5.4% from a year earlier, for the month of July, and 0.5% from the previous month. Core inflation, however, rose by just 0.3% in July, below the 0.4% increase forecast.

Micron shares fell 6% during the regular session after Morgan Stanley predicted a slowdown in the memory chip market and downgraded the stock.

Disney shares popped 3% in after-hour trading Thursday afternoon following the media giant's quarterly earnings. The company beat estimates on both profit and revenue.