Day Traders Diary

11/11/21

The major averages closed mixed after hot inflation data and surging bond yields sparked a sell-off in technology stocks Wednesday. The S&P 500 ticked up just 2 points. The tech-heavy Nasdaq Composite gained 81 points or 0.52%. The Dow Jones Industrial Average shed 158 points, led to the downside by Disney's 6% drop.

Tech names rallied Thursday after October's consumer price reading pushed up bond yields Wednesday. The spike in rates pressured growth pockets of the equity market.

Nvidia rose more than 3% and AMD each added more than 4%. Big Tech stocks like Facebook-parent Meta and Google-parent Alphabet both rose.

Shares of commodity producers in the S&P 500 hit a record as investors bet on sustained inflation. The Materials Select Sector SPDR Fund hit a fresh intraday all-time high. Mining company Freeport-McMoRan ran up more than 9% and steel producer Nucor rose more than 3%.

On the downside, Disney shares fell more than 6% after the media giant missed on the top and bottom lines of its quarterly results. Disney+ subscribers also came in short of estimates.

The bond market is closed Thursday for Veterans Day.

Wednesday's inflation report showed the consumer price index, which tracks a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% in October from a year ago, hitting its highest level in three decades.

Following the CPI data, traders moved up their expectations for when the first Fed rate hike would occur. The Fed funds futures market now sees greater odds of the central bank's first full rate hike coming in July 2022.

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