Day Traders Diary

9/15/21

The major averages rose sharply after a string of negative trading sessions this September. The Dow Jones Industrial Average rose 236 points, or 0.7%. The S&P 500 ticked up 37 points or 0.9%. The Nasdaq Composite traded up 123 points or 0.8%.

Some bullish economic news released before the bell Wednesday helped stabilize investor sentiment. The New York Fed's Empire Index, a measure of manufacturing in the region, came in at 34.3 for September, way ahead of the 18 consensus estimate from FactSet and an acceleration from August.

Energy stocks, which have been popular bets among investors banking on a big economic recovery, gained as WTI crude rose. The Energy Select Sector SPDR ETF gained more than 3%. Exxon added about 3.3%.

Rising U.S. Treasury yields helped lift bank stocks, with Citigroup up more than 2% and Morgan Stanley about 1.2% higher. Higher interest rates typically boost bank profits.

Industrial names closely linked to the economic recovery also gained, with General Electric and Caterpillar higher.

Microsoft shares gained more than 1% after announcing a dividend increase and a sizable $60 billion share repurchase program.

Casino stocks like Las Vegas Sands and Wynn Resorts traded in the red again on Wednesday. Those names took a big hit Tuesday as the government of Macau looks to increase regulatory scrutiny over casinos and Chinese health authorities reported a Covid-19 outbreak.

Markets have been in a funk so far this month amid rising investor worries about the delta variant derailing the economic recovery, along with hand-wringing over the next action by the Federal Reserve.

September has historically been a down month for the markets, which have seen an average decline of 0.56% in the month since 1945, according to CFRA. And after eight months of straight gains, strategists say a pullback could be imminent.

For September, the Dow is down more than 1% and the S&P 500 is off roughly 0.8%. The S&P 500 is on track to see its worth monthly performance since January.