Day Traders Diary

9/13/21

The major averages closed mixed with the Dow Jones Industrial Average performing well rebounding from a five-day losing streak, but pulled back from earlier intraday highs. The Dow rose 263 points, or 0.6%. The S&P 500 traded up 10 points while the Nasdaq Composite dipped 9 points. 

Covid cases reached a 7-day average through Friday of about 136,000, down from 157,000 average new cases at the end of August, according to the CDC. Pfizer's Covid vaccine could be authorized for children by the end of next month, sources familiar told Reuters.

The Dow's rally faded as the day went on; the index jumped more than 300 points earlier in the session.

CNBC's Jim Cramer warned investors Monday morning that positive stock market openings could fade during the trading day, especially during a historically tough month like September.

Energy names popped Monday as oil prices rose. Marathon Oil, APA Corp, Occidental Petroleum and other energy stocks were among the top gainers on the S&P 500.

Names linked to the reopening also gained. Delta Air Lines and Carnival Corp edged higher. Traditional cyclical plays GM and Citigroup rose.

Nike shares fell after BTIG downgraded the stock citing supply chain challenges caused by the pandemic. Production issues could significantly impact Nike's holiday sales, BTIG said.

Inflation fears have contributed to the market's recent losses. Data released Friday showed that producer prices rose 0.7% in August and 8.3% year over year, which was the biggest annual increase since records were first kept in November 2010.

The closely watched consumer price index will be released on Tuesday, at which point the Street will see how much of the heightened costs are being passed along to consumers. Economists surveyed by FactSet are expecting the reading to show that consumer prices jumped 5.3% on an annual pace in August. Retail sales data will be released later in the week.

Stocks have been under pressure since August's jobs report, released by the Labor Department on September 3, missed expectations. Worries are rippling through the market that the pandemic will continue to hamper economic growth while hot inflation will prompt the Federal Reserve to take action.

Despite last week's losses, the major averages are still relatively close to their record levels. The Dow, S&P 500 and Nasdaq Composite are all less than 3% below their all-time highs.