The Canadian Vanguard Stock Market Report At Close – Friday, January 19, 2024
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Your Weekend edition of Market Report And Analysis For Monday’s Winning Trades
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The Toronto Market
The TSX composite index was up 149.79 points or 0.72% to close today’s market session at 20,906.52. The market session on Friday was like a rising tide that lifts all boats.
The market was broad-based positive today. Eight of the ten TSX major sectors were up. Technology, with 1.8% gain, lead the sectors. Financials gained 1.27%; Utilities gained 0.91%, Healthcare gained 0.88% and Industrials gained 0.45%. Basic Materials gained 0.1%. Energy, down -0.03%, and Durable Consumer Goods & Services, down -0.23%, were the worst performing sectors.
Electrical Components & Equipment, up a solid 6.36% was the top performing industry on the TSX at the market session Friday. Real Estate Operators was up 4.33%; Coal was up 3.67%; Medical Equipment, Supplies & Distribution was up 3.06% and Reinsurance gained 2.93%.
If you have been following our stock market reports, you might have noticed that the Coal industry has been doing relatively well the last several sessions, in spite of all the talk about renewable energy sources becoming dominant. The problem is that the reality is yet still far from those talks. Coal and Fossil fuels are not disappearing any time soon. In any case, as an investor, your goal is to make money. Note that most of the Coal industry stocks are penny stocks so beware! Here are some of the companies belonging to the TSX’s Coal industry group, in case you wish to do further research for your investment planning: Canaf Investment Inc. (TSX:CAF), Colonial Coal International Corp (TSX:CAD), Morien Resources Corp (TSX:MOX) and SouthGobi Resources Ltd (TSX:SGQ).
Today’s Statistics:
The gaining issues (advancers) outnumbered the declined issues (decliners) today. The ratio was 1.59-to-1.00 or roughly for every eight advancers there were five decliners. In real numbers, 847 advancers to 533 decliners with 146 Unchanged. The total volume of shares traded for gaining stocks was 167,980,613 or 56.7%; the total volume for declined stocks was 111,704,015 or 37.7% and 16,459,645 or 5.6% for “Unchanged”.
There were 168 new 52-Week Highs and 40 new 52-Week Lows. Yesterday, the market was lopsidedly bearish. Today, the market was almost lopsidedly bullish. It appears that the market is joggling a number of conflicting signals: impressive quarterly corporate reports; war and trouble spots in the Middle East; and Economic data contradicting markets expectations of lower interest. The market was positive and the TSX managed to remain under the 21,000 level. The market will do what it chooses to do but we can watch carefully and reflect cautiously before making trades.
The total volume of stocks traded at the TSX today was 296,144,273 compared with 307,874,564 yesterday, a 4% decrease. Today’s volume of 296,144,273 is about the average of the ten most recent market sessions.
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The US Market
The Dow Jones Industrial Average advanced 395.19 points, or 1.05%, to close at 37,863.80. The S&P 500 gained 58.87 points, or 1.23%, to close at 4,839.81. The Nasdaq Composite advanced 255.32 points or 1.70%, to close at 15,310.97. It was a buoyant market session with the big Technology giants making big gains. The market, for now is ignoring all the negatives while focusing mainly on the positives. Traders will cross the other bridge when they get to it. Today was a day to care less why the market is making gains as long as gains are being made.
The US market was broad-based positive on Friday, in fact, it was a very buoyant market indeed. Eight of the US market’s major sectors ended the session with gains. Utilities, down -0.02% and Durable Consumer Goods & Services, down -0.39%, were the only two to end the session in red. Technology, up a healthy 2.07%, was the top performing sector. Financials, up 1.42%, had a good session; Industrials was up 0.84%; Basic Materials was up 0.16%; Energy was up 0.13% and Healthcare was up 0.08%.
Computer Hardware industry was up 5.53%; Semiconductors was up a respectable 3.94%; Semiconductor Equipment & Testing was up 3.3%; Advertising / Marketing was up 2.8% while Aluminum gained 2.52%.
For the week, only three sectors ended in green, reflecting market volatility earlier this week. Technology, up 3.93%, was the top performing sector; Telecommunications was up 1.69% for the week; Industrials was up 0.37%. Utilities declined -2.98%; Basic Materials declined -2.08%; Energy was down -1.93%; Healthcare was down -1.18%.and Financials was down -0.24%.
Today’s Market Statistics: Today, the gaining issues (advancers) outnumbered the declined issues (decliners) on the NYSE by a ratio of roughly eleven advancers to every five decliners or 2.27-to-1 numerically. In real numbers, 2,782 advancers to 1,226 decliners with 271 “Unchanged”. The total volume of volume-gaining stocks was 786,899,723 or 70.4%; the total volume of declined-volume stocks was 311,219,045 or 27.9%; and 19,060,563 or 1.7% “Unchanged”.
There were 313 new 52-Week Highs and 112 new 52-Week Lows. The current rally got energized and a shot in the arm by impressive corporate reports from the technology sector. The market rally is back until we get another trend reversal performance from the market.
The total volume of stocks traded at the NYSE today was 1,117,179,331 compared with 956,958,606 yesterday, a 17% increase. Today’s volume of 1,117,179,331 is about three per cent lower than the average of the ten most recent market sessions.
The market today, completely reversed the negative trends of the past two sessions. The volume was impressive. The market rally got energized but we must still trade with caution and refrain from chasing stocks with prices quite extended especially with the US 10-year yield now above 4%.
On the NASDAQ, the advancers outnumbered the decliners by a ratio of roughly eight advancers to every five decliners or a ratio of 1.62 -to-1 in numbers. There were 2,639 advancers to 1,624 decliners with 324 unchanged. The total volume of volume-gaining stocks was 4,033,988,606 or 70.5%; the total volume of declined-volume stocks was 1,604,374,213 or 28% and 82,698,495 or 1.4% for “Unchanged”.
Today, there were 198 new 52-Week Highs and 221 new 52-Week Lows. Yesterday the comparable figures were 55 new 52-Week Highs and 242 new 52-Week Lows. The NASDAQ market positive performance was not as broad-based as the NYSE performance. In fact, the NASDAQ was driven almost solely by technology stocks.
The total volume of stocks traded at the NASDAQ today was 5,721,061,314 compared with 5,301,086,820 yesterday, an 8% increase. Today’s volume of 5,721,061,314 is about the average of the ten most recent market sessions.
The market outlook has changed to trade but with caution.
10–year Treasury Yield: The 10-year yield was up 20 basis points to 4.15%, clearing the 200-day line. In late December, the 10-year Treasury yield was trending down which spurred the current market rally. Now that the 10-year yield is climbing back and well over the 4% mark, the market rally may be become tenuous. The 2-year yield was up 27 basis points to 4.41%. The 2-year yield is closely related and closer to the real current interest from the Feds.
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Stocks In The News/Stocks To Watch
The Toronto Market
Friday’s market was driven by corporate earnings reports largely spearheaded by technology companies. Technology within TSX is heavily weighted by Shopify. Celestica Inc (TSX:CLS) and Shopify Inc (TSX:SHOP) were noteworthy performers on Friday. Shopify did not deliver earnings report this week. The stock was up Friday adding to impressive gains in the last two months.
Celestica Inc. has currently scheduled to deliver earning’s report on January 30th.
The US markets
Super Micro Computer Inc. (SMCI) was the outsized performer on Friday. SMCI stock gained 36% after the company reported that it expects fiscal second-quarter adjusted earnings of $5.40 to $5.55 a share, higher than analysts’ estimates of $4.51. It expects sales of $3.6 billion to $3.65 billion. Super Micro Computer Inc. manufactures rack mounted servers some of which are purpose-driven to support heavy AI driven computation.
Friday, Advanced Micro Devices (AMD) rose 7.1% to $174.23 while Nvidia (NVDA) climbed 4.2% to $594.91 after shares of both chip makers closed at all-time highs on Thursday. AMD has soared 26% this year while Nvidia has risen 24%.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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