Day Traders Diary

10/13/21

The major averages closed mixed as third-quarter earnings commence. The Dow Jones Industrial Average closed down 53 cents at 34,377. The S&P 500 closed up 13 points while the Nasdaq Composite ticked up 105 points or 0.73%.

Minutes released Wednesday afternoon from the Federal Open Market Committee's September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

The September consumer price index released Wednesday morning jumped 0.4% in September from the month prior and 5.4% year over year, according to the Labor Department. Economists expected to see a month-to-month increase of 0.3% or annualized rate of 5.3%, according to Dow Jones.

Excluding energy and food, the core CPI rose 0.2% month over month and 4% over the last 12 months, against respective estimates for 0.3% and 4%.

Third-quarter earnings season kicked off on Wednesday with JPMorgan Chase, which said that quarterly profit topped expectations following a boost from better-than-expected loan losses. Revenue for the largest U.S. bank by assets also came in higher than expected.

JPMorgan shares fell more than 2% following the report despite the strong earnings report. The stock is up roughly 27% this year.

Delta Air Lines also reported financial results before the opening bell on Wednesday. The company posted higher-than-expected revenue and its first quarterly profit without counting federal aid since the start of the pandemic.

However, the airline said higher costs of fuel and other expenses will pressure its fourth-quarter bottom line. Shares of Delta shed roughly 6%.

Apple shares dipped less than 1% after a Bloomberg News report that said it is likely to cut iPhone 13 production because of chip shortages.

Despite Apple's retreat, technology stocks enjoyed a lift Wednesday from lower U.S. 10-year Treasury note yield. Low interest rates can push growth stock prices higher because they lift the value of companies' future earnings. Investors tend to reach toward those high-margin technology shares when interest rates are low.

A relatively strong tech sector helped support the Nasdaq Composite and S&P 500. Big Tech names Microsoft, Google-parent Alphabet and Amazon rose. Nvidia, Zoom and Salesforce also gained.

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