Day Traders Diary

8/24/22

The major averages rose on Wednesday, snapping a three-day decline, as investors awaited more clarity on the Federal Reserve's fight against inflation. The Dow Jones Industrial Average gained 59 points, or 0.19%. The S&P 500 climbed 12 points while the Nasdaq Composite advanced 50 points or 0.41%. The Dow and the S&P 500 were higher after three straight sessions of declines.

Energy, real estate and financials were the best-performing sectors in the S&P 500. Meanwhile, information technology, health care and consumer staples were market laggards.

Cruise lines were among the best-performing stocks in the broader market index. The Norwegian Cruise Line Holdings jumped 8.4%, Royal Caribbean Group advanced 7.6%, and Carnival was 5.3% higher.

In contrast, Advanced Auto Parts was the worst performer in the S&P 500, down 9.6%, after missing earnings expectations and lowering its full-year guidance.

Investors are awaiting the three-day Jackson Hole economic symposium that starts Thursday with Federal Reserve Chair Jerome Powell slated to speak Friday morning. Fed watchers expect him to reinforce the central bank's goal of squashing inflation and keeping expectations about future price gains in check.

Key economic reports through the remainder of the week include jobless claims on Thursday and the personal consumption expenditures price index on Friday. The Fed keeps a close eye on the PCE report.

"We're really in a situation where the markets are betwixt and between," said U.S. Bank Wealth Management's Lisa Erickson.

"It's really waiting for some more significant news at the end of the week with the Jackson Hole speech and the PCE, so what we're really seeing is just investors, I think, modestly floating up and down with the downward bias," Erickson added.

In a week where rebounding oil prices have muddied the narrative about improving inflation, another commodity is now getting a price hike.

Cleveland-Cliffs announced on Wednesday that it is hiking the price on all of its carbon steel products by a minimum of $75 per ton. The company said the move is effective immediately on new orders in North America.

Shares of Cleveland Cliffs moved higher on the news and were up about 1.9% for the day at roughly $18.20 per share.

The stock surged above $33 per share earlier this year when steel prices were strong, but slumped back toward $15 per share as pricing weakened over the summer.

Growth stocks and the Nasdaq 100 have come under pressure this year as the Federal Reserve fights to curb surging inflation. Amid this backdrop, many technology stocks — from semiconductors to big technology giants – have fallen significantly off their highs.

Some investors looking to play the market have begun adopting a so-called growth at a reasonable price strategy (GARP), which employs aspects of both growth and value investing.

CNBC Pro conducted a screen using FactSet data to find some names within the Nasdaq 100 that ascribe to these strategies. CNBC Pro subscribers can check out which stocks made the cut here.

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