Day Traders Diary

11/12/21

The three major U.S. stock indexes closed lower for a third-straight session Tuesday ahead of a key inflation reading and a kick-off to third-quarter earnings season. The Dow Jones Industrial Average shed 117 points, or 0.34%. The S&P 500 ticked down 10 points or 0.24%. The Nasdaq Composite traded down 20 points or 0.14%.

The averages traded near the flatline for much of Tuesday's session before selling picked up into the close.

The consumer price index for September is slated to be announced Wednesday morning. Economists expect prices for an array of consumer goods to jump 0.3% in September from the month prior and 5.3% year over year, according to Dow Jones.

The Federal Open Market Committee on Wednesday is also set to release its minutes from the September meeting. Investors will be digesting the minutes for any potential clues regarding the central bank's plans to pullback easy monetary policy.

JPMorgan Chase and Delta Airlines are scheduled to kick off the third-quarter earnings season Wednesday with reports before the bell.

Other major companies reporting quarterly financial results later this week include Bank of America, Walgreens Boots Alliance, Wells Fargo, Morgan Stanley, Citigroup and Goldman Sachs.

Earnings growth is expected to grow about 30% year over year this quarter following a 96.3% expansion in the second quarter, according to Refinitiv.

All three major indexes are coming off two consecutive negative sessions as inflation and economic growth concerns loom.

The International Monetary Fund on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread.

The IMF said central banks like the Federal Reserve should be prepared to tighten monetary policy if inflation runs too hot.

Job openings in August fell by more than half a million to 10.4 million, according to the Labor Department's latest Job Openings and Labor Turnover Survey released Tuesday.

The stock market went through a bumpy ride in September, with the S&P 500 falling 4.8% for its worst month since March 2020 and breaking a seven-month winning streak. The benchmark has recovered somewhat in October, up about 1.3% for the month.

But the rebound has stalled out a bit in recent days. Wall Street major strategists are seeing muted returns for the rest of 2021 as the average year-end S&P 500 target stands at 4,433, less than 2% from Monday's close

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