Day Traders Diary


The major averages pulled back as the S&P 500 snapped an eight-day winning streak Tuesday as investors took some profits after an October rally and awaited key inflation data ahead. The broad Index fell 16 points or 0.34%. The Dow Jones Industrial Average shed 112 points, or 0.5%. The Nasdaq Composite dropped 95 points or 0.6%.

All three major averages rose to new highs Monday. The S&P 500 on Monday posted its 64th record close of the year and eighth straight positive day — its longest winning streak since April 2019. The broad equity index is up more than 24% in 2021.

The October producer price index increased 0.6% month over month, the Labor Department said Tuesday, in line with the Dow Jones consensus estimate. Still, wholesale prices jumped 8.6% in October from a year ago, the hottest annual pace on record in nearly 11 years.

Investors are awaiting the release of another key inflation reading Wednesday. The closely watched October consumer price index is also expected to show a 0.6% jump compared to the prior month.

PayPal on Tuesday was the biggest laggard on the S&P 500 and Nasdaq Composite, sinking more than 11%. The digital payments company missed on quarterly revenue expectations and issued weaker-than-expected fourth-quarter and full-year guidance.

Tesla shares fell more than 9%, also weighing on the S&P 500 and Nasdaq Composite. The stock continued its retreat after founder Elon Musk this weekend asked in a Twitter poll whether he should sell 10% of his stock, with nearly 58% of respondents saying yes. Even after Tuesday's pullback, Tesla is up more than 44% this year.

On the upside, shares of GE added more than 2% after the industrial giant announced it will split into three public companies focusing on aviation, healthcare and energy. The stock led gains on the S&P 500.

Strong earnings results have also supported stocks in running to new highs. Through Tuesday morning, 459 companies in the S&P 500 have reported quarterly results, with 81% beating earnings estimates.

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