Day Traders Diary

3/29/22

The major averages extend their winning streak as traders monitored ceasefire negotiations in Europe and key levels in the bond market. The Dow Jones Industrial Average rose 338 points, or nearly 1%. The S&P 500 gained 5 6points or 1.2%, while the Nasdaq Composite climbed 264 points or 1.8%. The Dow and S&P 500 have advanced in four straight trading sessions.

Auto stocks were some of the biggest gainers, with Ford and GM each rising about 5%. Travel stocks outperformed as well, with Caesar's Entertainment and American Airlines each gaining more than 5%. In tech, Netflix climbed more than 3% and Snap jumped nearly 5%.

Traders kept a close eye on the bond market, where the 5-year Treasury note held above the 30-year on Tuesday, stoking some recession fears.

The spread between the 2-year and 10-year yields, which economists see as more predictive of a potential recession, narrowed perilously close to inversion on Tuesday. Some bond pricing sources said the curve did invert, but CNBC data showed that it became just about flat but did not technically invert.

Even when the yield curve correctly predicts a recession, it can still be more than year before the slowdown happens, history shows. Investors appeared to shake off the recession fears on Tuesday.

Growing hope for a Russia-Ukraine ceasefire appeared to help investor sentiment on Tuesday morning. Russian Deputy Defense Minister Alexander Fomin said Tuesday that the country will "drastically" reduce military activity near the Ukrainian capital Kyiv.

To be sure, both sides have said in recent days they are not close to reaching a deal. Ahead of the negotiations in Turkey, Ukrainian Foreign Minister Dmytro Kuleba said on that "nothing is agreed upon unless everything is agreed upon." Stocks gave back some of their gains on Tuesday after U.S. Secretary of State Antony Blinken said the U.S. was focused on Russia's actions more than its words.

Futures for U.S. crude benchmark West Texas Intermediate briefly fell below $100 per barrel on Tuesday morning before rebounding to about $104 per barrel.

The Dow and S&P 500 are each on track for their fourth straight positive session. The S&P 500 has now rebounded more than 10% since March 14.

In corporate news, shares of FedEx rose more than 3% after the company announced that founder Fred Smith would step down as CEO on June 1 and be replaced internally.

Health care giant UnitedHealth Group announced a deal to buy LHC Group for $170 per share, sending the smaller company's stock up 7%.

The conference board's consumer confidence index came in at 107.2, below the 107.5 expected, according to Dow Jones. The Job Openings and Labor Turnover Survey showed 11.3 million job openings, higher than the 11.1 million expected.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.