The Canadian Vanguard Stock Market Report
Friday and Weekend Edition November 3 – 5, 2023
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Sunday Night Futures
Dow Jones, with S&P 500 and Nasdaq futures futures were up slightly Sunday evening. Oil was up 0.65%. Saudi Arabia today extended a voluntary production cut of one million barrels per day as part of the country’s effort to protect Oil price.
10 –year Treasury Yield: The 10-year Treasury yield is up a couple of basis points to 4.59%,
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Friday’s Market Report
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The Toronto Market
The Toronto TSX composite index gained 198.51 points or 1.01% to close at 19,824.51. The TSX has s gained for five consecutive sessions. The TSX gained every day of this week. This is quite a remarkable performance presenting a good opportunity for investors to recoup some of the losses incurred during the brutal previous two weeks. The TSX appears to be on the way, given the current momentum, to cross the 20,000 level within the next couple of sessions.
The market on Friday continued to fire positively on all cylinders. Only the energy sector declined Friday. It declined -1.04%. Durable Consumer Goods & Services was the performing sector with a gain of 3.13%. Basic Material gained 2.07%; Telecommunications, Healthcare, Technology and Financials gained 1.85%, 1.78%, 1.55% and 1.50% respectively.
For the week, Technology gained 17.13%; Healthcare gained 9.11%; Telecommunications Services gained 8.79%; Financials gained 7.16%; Utilities was up 6.85% and Durable Consumer Goods & Services 6.19%. It was a good week for stocks and investors.
Looking at industries’ performance today, Retail – Apparel & Accessories was up 9.14%; Auto, Truck & Motor Parts gained 7.77%; Airlines gained 4.70%; Retail – specialty was up 3.86% and Air freight & Courier Services gained 3.41%.
Today’s Statistics: The gaining issues (advancers) totally outnumbered the declined issues (decliners) by the ratio of 4-to-1. In real numbers, 1,180 advancers to 294 decliners with 153 Unchanged. The total volume of shares traded for gaining stocks was 237,040,897 or 64.3%; the total volume for declined stocks was 117,756,966 or 31.9% and 13,977,978 or 3.8% for “Unchanged”.
There were 33 new 52-Week Highs and 19 new 52-Week Lows. The number of 52-Week Highs for the second session running outnumbers the 52-Week Lows. The market outlook has definitely changed.
The US markets
Today was another day of robust gains at the US markets. The Dow Jones Industrial Average closed up 222.24 points, or 0.66%, to close at 34,061.32. The S&P 500 was up 40.56 points, or 0.94%, to close at 4,358.34. The Nasdaq Composite was up 184.09 points or 0.28%, to close at 12,478.28.
The market indexes are rallying because interest rates are likely not going up any time soon. The good news is that while the end of interest rate hikes is not in sight yet, we are likely getting close to where we can start to talk about reversal of interest rate trends. We could start seeing reversal of interest rate hikes possibly as soon as the middle of next year. Treasury yields tumbled after October payrolls report missed expectations. It was a good week for the markets and possibly with uptrend likely to continue at least in the short term. All eyes will be on the 10-year yield this coming week. If it turns upwards then the rally will be short lived.
Every major sector at the US markets was up Friday except Energy which declined -1.06%. Financials gained 1.86%; Basic Materials gained 1.61%; Technology gained 1.40%; Industrials gained 1.20%; Telecommunication Services gained 1.15% while Utilities and Healthcare gained 0.71% and 0.55% respectively.
Looking at industries’ performance today, Rails & Roads – Passengers was up 5.55%; Real Estate Operations was up 5.24%; Tires & Rubber Products gained 5.01% and Casinos & Gaming gained 4.64%.
Today’s Market Statistics: Today, the gaining issues (advancers) completely outnumbered the declined issues (decliners) on the NYSE. The ratio of advancers to decliners on the NYSE was 5.55-to-1; the bears took a big hit again at Friday’s market. In real numbers, 3,435 advancers to 619 decliners with 195 “Unchanged”. The total volume of volume-gaining stocks was 894,269,800 or 81.2%; the total volume of declined-volume stocks was 197,806,720 or 18%; and 9,257,412 or 0.8% “Unchanged”. There were 123 new 52-Week Highs and 31 new 52-Week Lows.
The total volume of stocks traded on the NYSE today was 1,101,333,932 compared to 1,119,017,319 yesterday, a 2% decrease. Today’s total volume, of 1,101,333,932 shares traded was slightly higher than the average of the most recent ten-market sessions. The ratio of stocks that recorded a new 52-Week High, was four times those that declined to a new 52-Week Low. It has not happened for several weeks that the new 52-Week High exceeded the new 52-Week Low. This a further confirmation that the market’s character has changed.
On the NASDAQ, just like on Thursday, the advancers completely outnumbered the decliners Friday. There were 3,407 advancers to 956 decliners with 326 unchanged, a ratio of 3.56-to-1, or roughly eighteen advancers to every five decliners. The total volume of volume-gaining stocks was 3,852,784,571 or 76.8%; the total volume of declined-volume stocks was 1,147,560,050 or 22.9% and 15,397,214 or 0.3% for “Unchanged”. There were 64 new 52-Week Highs and 93 new 52-Week Lows.
The total volume of stocks traded today was 5,015,741,835 compared to 5,097,993,461 yesterday, a 9.2% increase. The volume of stocks traded today at 5,015,741,835 was higher than the average volume of the most recent ten market sessions. The daily total volume has been on the increase for four consecutive sessions indicating more investors and as of today more funds moving back in to the market.
10 –year Treasury Yield: The 10-year Treasury yield fell seven basis points to 4.58%, extending to four days of decline. The 10-year Treasury yield closed on its 50-day line. For the week, the 10 year yield fell 29 basis points.
Stocks In The News/Stocks To Watch:
The Toronto Market
The Canadian big five banks are on the upswing. They have so far fully participated in the current rally. It will be an incomplete analysis though to discuss the banks without their dividend yields as most investors in bank stocks tend to do so primarily for income and security as opposed to growth. Following the rally so far this week, Royal Bank (RY) with a quarterly dividend yield of 4.65% gained 9.5% during the week; Canadian Imperial Bank of Commerce (CM) with a quarterly dividend yield of 6.72% gained 7% this week; Bank of Montreal (BMO) with a quarterly dividend yield of 5.35% gained 6.3% this week and TD Bank (TD) with a quarterly dividend yield of 4.74% gained 6% this week.
A good number of stocks made good gains during the past four market sessions but most stocks are still recovering from the damage done during the bearish sessions of the previous two weeks. A good number of stocks still feature damaged charts.
Badger Infrastructure Solutions Ltd (BDGI) is a stock to add to a watchlist. BDGI has gained during the last nine sessions after three months of building a flat base. The stock looks a bit extended and may due for a short pause but it is a stock to keep an eye on.
Cameco Corp (CCO) defied the bearish market sessions in late October and has started to rally with as the market outlook changed. It is certainly a stock to keep an eye on.
Open Text Corp may be building the right side of a base. On Friday the stock gained 4.77% or $2.26 to close at $49.63 with a volume of 934.5K shares changing hands.
The US Markets
Nvidia Corp (NVDA) is back on the upswing in sync with the current market rally. The stock gained 3.45% or $14.99 to close at $450.05 with 42.5M shares traded.
Another stock to keep an eye on is Teekay Tankers Ltd. (TNK). TNK gained 2.06% or $1.07 to close at $52.99 with a total volume of 822.6K shares changing hands Friday.
Education services stocks are in demand. Grand Canyon Education Inc. (LOPE) gained 12.54% or $15.27 to close Friday’s market session at $137.07. The total volume of shares traded was 796.2K
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
IMPORTANT NOTICE
Readers are reminded that the market’s performance at the following day’s market session may completely differ from the market performance at the overnight markets.
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