We used a daily diary design to evaluate a daily model of stress generation that included both daily sadness and hostility as precipitants, and interpersonal competence as a moderator variable. Our results indicated that daily stress generation was precipitated by daily hostile, but not sad, mood. Participants’ skill at initiating interactions influenced daily stress generation in an unexpected direction. Specifically, the positive daily relationship between hostility and dependent stress was stronger for those with higher initiation scores. The results suggest that stress generation at the daily level functions differently than stress generation involving major life events. We discuss the implications of these findings for future research on stress generation.