Day Traders Diary

6/2/22

The major averages rose sharply today thanks to an intraday comeback as the three major indexes snapped two-day losing streaks. The Dow Jones Industrial Average added 434 points, or 1.3%. The S&P 500 gained 75 points or 1.8%. The tech-heavy Nasdaq Composite advanced 322 points or 2.7%.

The three averages are now on pace for a positive week.

Thursday saw another rocky session on Wall Street with the stock averages oscillating losses and gains. The Dow was down more than 300 points at its lows of the session.

Fed Vice Chair Lael Brainard on Thursday said it is unlikely the central bank will take a break from its current rate hiking cycle anytime soon.

Meanwhile, Microsoft warned revenue and earnings this quarter would fall short of analysts' estimates. The stock initially fell, but made up losses to inch up 0.4% on the day.

Other technology names rose and boosted the Nasdaq. Nvidia gained more than 6%, Zoom rose about 4% and Tesla added nearly 5%.

Meta Platforms edged about 4% higher a day after Sheryl Sandberg announced she is stepping down from her role as chief operating officer.

Traders also parsed through corporate earnings results. Hewlett Packard Enterprise fell around 5% following slight misses on both earnings and revenue. Meanwhile, shares of pet retailer Chewy surged about 22% after the company reported strong quarterly results.

Investors eyed employment data showing the slowest job creation pace of the pandemic-era recovery. Private sector employment rose by just 128,000 in May, ADP reported Thursday, falling well short of the 299,000 Dow Jones estimate. In another report Thursday, initial jobless claims last week fell and came in below expectations, according to the Labor Department.

The closely-watched jobs report for May is slated for release Friday morning. Economists expect 328,000 nonfarm jobs were added in the latest month, compared with 428,000 in April.

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