Day Traders Diary

12/28/21

The major averages closed mixed as investors were unable to build on record highs in the final week of the year. The Dow Jones Industrial Average added 95 points, or 0.3%, in its fifth-straight winning day. The S&P 500 dipped 4 points after reaching a fresh intraday high earlier in the session. The Nasdaq Composite fell 89 points or 0.56%.

The move comes after stocks rallied in Monday's regular session, with the S&P 500 closing at its 69th record high of the year.

Markets continued to look to pandemic news for direction with the threat of the omicron variant looming large.

The Centers for Disease Control and Prevention on Monday shortened its isolation recommendation for people who test positive to five days from 10, if those people do not have symptoms. Research out of South Africa also indicated that omicron infections can help boost immunity to the earlier delta strain of Covid.

Covid drug makers traded lower amid the omicron developments. Pfizer fell 2.1% and Moderna retreated 2.3%.

Chip stocks that rallied in the previous session fell Tuesday. Nvidia dipped 2.1% and Applied Materials pulled back 2.2%.

On the upside, travel-related stocks hit hard in Monday's session rebounded Tuesday. Aircraft maker Boeing was one of the Dow's leaders with a 1.4% gain. American Airlines was among the S&P 500′s top gainers, rising 2%.

For the year, the S&P 500 is up more than 27% and the Nasdaq is up about 23%. The Dow is the relative laggard, up more than 19%.

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