The Canadian Vanguard Stock Market Report At Market Close – Tuesday, March 5, 2024
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Data Driven Market Analysis And Report For Tomorrow’s Winning Trades
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The Toronto Market
The TSX declined -5.14 points or -0.02% to close today’s market session at 21,525.93. Today’s decline is rather minimal or best ignored except for really critical analysis which is out of scope here. The TSX is on a roll, however, Bank of Canada’s rate decision tomorrow may affect the market. According to news reports, analysts predict the Bank of Canada will leave its target for the overnight rate at 5% when it issues its latest monetary-policy decision on Wednesday. The Bank of Canada Gov. Tiff Macklem and Senior Deputy Gov. Carolyn Rogers are scheduled to hold a press conference after the rate decision to explain their rationale.
Only three of TSX’s major sectors ended the market session in green today. Energy, up 0.64%, remained the top gainer today, repeating yesterday’s performance; Financials sector followed, but up only 0.22%; Utilities sector was up 0.09%. Basic Materials declined and ended the day down -0.01%. Healthcare declined -0.50%; Telecommunications Services declined -0.98% and Technology declined a big -2.67%. Some sectors of the market clearly struggled today. The TSX was a bit volatile today.
Construction Materials, an industry that rarely shows up in the limelight on the TSX, was the top performer in its industry group today. It was up 6.61%. Publishing was up 3.45%; Coal was up 3.40%; Medical Equipment, Supplies & Distribution was up 1.07% while Oil & Gas Exploration & Production was up 0.90%.
Today’s Statistics: The the gaining issues (advancers) outnumbered the declined issues (decliners) today. The ratio of advancers to decliners was 1.34-to-1.0 or in practical terms, for every seven advancers there were five decliners. In real numbers, 877 advancers to 656 decliners with 107 Unchanged. The total volume of shares traded for gaining stocks was 233,601,428 or 59.1%; the total volume for declined stocks was 153,641,877 or 38.9% and 8,034,610 or 2.0% for “Unchanged”.
There were 190 new 52-Week Highs and 20 new 52-Week Lows.
The total volume of stocks traded at the TSX today was 395,277,915 compared to 363,370,506 yesterday, roughly nine percent increase. Today’s volume of 395,277,915 was three percent higher than the average of the ten most recent market sessions.
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The US Markets
All three US indexes suffered heavy declines today. The Dow Jones Industrial Average declined -404.64 points, or -1.04%, to close at 38,585.19. The S&P 500 declined -52.30 points, or -1.65%, to close at 5,078.65. The Nasdaq Composite was down 267.92 points or 0.90%, to close at 15,939.59. Nasdaq suffered more in percentage terms. The US market’s session was negative right from market open to the market close.
Only three sectors led by Energy, which was up 0.53%, ended the session in green at the close of the market session. Telecommunications Services was up 0.50% and Financials was up 0.20%. Durable Consumer Goods & Services declined -0.12%; Utilities was down -0.16%; Industrials sector was down -0.84%; Healthcare was down -0.85%; Basic Materials declined -0.92% and Technology declined -1.98%. Technology sector had it really rough at both the US and Canadian markets today. The big technology names: Apple, Tesla, Google and others struggled throughout the session.
Banks led the industries with 3.01% gain; Retail – Discount Stores gained 1.68%; Wireless Telecommunications Services gained 1.17%; Financials Services – Diversified was up 1.02% while Diversified Trading & Distributing was up 0.91% to round up the top five industries at the TSX today. Software industry got clobbered today and declined -3.18%; Advertising / Marketing declined -3.10%.
Today’s Market Statistics: Today, the declined issues (decliners) outnumbered the gaining issues (advancers) on the NYSE. The ratio was 1.40-to-1 or there were roughly seven decliners to every five advancers. In real numbers, there were 2,353 decliners to 1,686 advancers and 271 “Unchanged”. The total volume of volume-gaining stocks was 492,403,097 or 45.0%; the total volume of declined-volume stocks was 584,199,826 or 53.4%; and 17,893,056 or 1.6% “Unchanged”.
There were 335 new 52-Week Highs and 57 new 52-Week Lows. The market keeps rallying on. The rally remains intact.
The total volume of stocks traded at the NYSE today was 1,094,495,979 compared with 1,113,702,624 yesterday, a two percent decrease. Today’s volume of 1,094,495,979 is about one per cent higher than the average of the ten most recent market sessions.
On the NASDAQ, the decliners prevailed over the advancers today by a ratio of 1.78-to-1 or roughly for every nine decliners there were five advancers. In real numbers, there were 2,782 decliners to 1,562 advancers with 317 unchanged. The current rally continues to roll on. The total volume of volume-gaining stocks was 2,748,257,768 or 42.3%; the total volume of declined-volume stocks was 3,696,668,158 or 56.8% and 58,491,045 or 0.9% for “Unchanged”.
There were 136 new 52-Week Highs and 113 new 52-Week Lows. The NASDAQ was negative today. It increasingly getting more negative. We need to wait a few sessions to determine if today was just a one-off correction day or the beginning of a new trend.
The total volume of stocks traded at the NASDAQ today was 6,508,025,116 compared to 5,568,333,176 yesterday, a sixteen percent increase. Today’s volume of 6,508,025,116 is ten percent higher than the average of the last ten market sessions.
Oil Price: U.S. crude oil prices dipped 0.75% to $78.15 a barrel.
10 –year Treasury Yield: The 10-year Treasury yield declined 8 basis points to 4.14% today. The trend appears to be downwards. Investors are generally more comfortable when the 10-year yield is below 4%.
The market outlook remains in confirmed uptrend.
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Stocks In The News/Stocks To Watch
The Toronto Market
Outside of mining, banking is one area of the market that is certainly doing well these days and surely worth looking at. Royal Bank (RBC) appears to be forming a flat base starting since mid-January. We’ll keep an eye on it. Some months back, the banks’ stocks were much lower in price but we are not likely to return to those prices any time soon. RBC was up today $1.21 or 0.92% to close at $133.12 with 1.8M shares traded.
The Canadian Imperial Bank of Commerce and indeed most of the five banks are also worth a second look. The banks are currently doing well both on the Toronto and US markets.
The US Markets
Apple (APPL) stock has been on the decline since mid-January. Today, APPL stock was down 2.84% to close at $170.12 with 95.1M shares changing hands. It was a negative market day generally but stocks declined earlier in the day but a good number closed off lows for the day, climbing off lows during the last hour of trading. Some news reports today, have it that Apple phones may presently be having tough times selling in the Chinese market.
Tesla was down today -$7.40 or -3.93% to close at $180.74 with 119.6M shares traded. It had appeared the stock was forming a base during the month of February but that is now destroyed. We mentioned in our report in December that EV manufacturers’ stocks should be considered long term investment. The analysis that generated that report increasingly appears “right on” for now at least.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The banks are on a roll.
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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