Day Traders Diary

11/21/22

The major averages fell on Monday in a volatile session to start a short trading week due to the Thanksgiving holiday. The Dow Jones Industrial Average fell 45 points, or 0.13%, to 33,700, though losses on the index were mitigated by a jump in Disney shares. The S&P 500 shed 15 points or 0.39% to 3,949 while the Nasdaq Composite fell 121 points or 1.09% to end the day at 11,024.

Fears that China may again ramp up Covid restrictions after reporting deaths from the virus weighed on markets, sending energy stocks and oil prices lower. Traders also looked for further signals from the Federal Reserve about future interest rate hikes.

Shares of Disney rose 6.29% after the company announced that former CEO Bob Iger would return to the helm of the entertainment giant, replacing Bob Chapek immediately. Iger's return to Disney ends a brief and rocky tenure for Chapek, who took over the CEO role in February 2020.

The recent bear market rally is likely on hold due to a shorter trading week for the Thanksgiving holiday, which may see increased volatility and lower volumes as traders take time off. Earlier in the month, stocks rose with the October consumer price index reading and gained some steam with last week's reading on wholesale prices.

Traders continue to monitor messaging from Federal Reserve officials after last week when they reassessed their optimism around the possibility of slowing inflation. On Monday, Cleveland Fed President Loretta Mester reiterated that rate hikes will continue, but that they may be smaller going forward.

The market will get more information about the central bank's path ahead to digest when St. Louis Fed President James Bullard speaks Tuesday.

The New York Stock Exchange will be closed Thursday for Thanksgiving, and will have a shortened trading day on Friday. This week, traders will be digesting further speeches from Federal Reserve leaders as well as earnings reports from Best Buy, Nordstrom, Dick's Sporting Goods and Dollar Tree.