Day Traders Diary

9/7/22

The major averages closed mixed with the Dow Jones Industrial Average falling nearly one percent on lingering concerns about the delta variant's impact on the economic reopening. The Dow dropped 267 points as Boeing stock lost 1.8%. The S&P 500 fell 15 points or 0.34%. The Nasdaq Composite actually rose 10 points or 0.07%, notching a new record close.

Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. Goldman now sees 5.7% annual growth in 2021, below the 6.2% consensus. The firm cut its fourth-quarter GDP outlook to 5.5%, down from 6.5%.

Boeing shares were lower after the Wall Street Journal reported deliveries for the 787 Dreamliner would likely be further delayed. PPG Industries, a paint maker, warned that sales may fall short this quarter because of logistics issues and higher commodity costs. Shares of PPG Industries ticked 3.4% lower.

Drug stocks including Johnson & Johnson, Merck and Amgen all closed lower after Morgan Stanley downgraded the three stocks.

The S&P 500 is down 0.06% for the month of September, a month that historically has challenged markets. The month averages a 0.6% decline, the worst of any month, with a positive rate of just 45%, according to CFRA.

In regular trading Friday, the Dow and S&P 500 fell after the August jobs report came in short of expectations, highlighting continued concern about the spread of Covid and its delta variant. Nonfarm payrolls increased by 235,000 in August, the Labor Department reported, but economists surveyed by Dow Jones expected 720,000 jobs.

Year-to-date, the Dow is up 14.7%, the S&P is up 20.3% and the Nasdaq Composite is up 19.3%, although investors and analysts are still on the lookout for a major correction in September.