HomeStock MarketsThe Canadian Vanguard Stock Market Report – January 10 – 12, 2025 Weekend

The Canadian Vanguard Stock Market Report – January 10 – 12, 2025 Weekend

The Canadian Vanguard Stock Market Report – January 10 – 12, 2025 Weekend

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Your Data-Driven Stock Market Analysis And Report –  the investor’s readiness guide for the week of January 13 market sessions.

(Updated regularly throughout the weekend)

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The Toronto Market, Friday                               

The TSX composite index declined -305.63 points or -1.22% to close the market session at 24,767.73. TSX suffered a major decline today. Today’s decline was largely driven by market influences from south of the border. Unemployment declined in Canada last month according to reports released today. A possible implication of today’s unemployment report is that the Bank of Canada may no longer see the need or the urgency to keep reducing interest rates or maintain the current pace of interest rate reduction.

                                                                                                                               

The Market Breadth:   Only two of the ten major sectors gained on Friday. Discretionary Consumer Goods & Services was up 0.49%; and Energy was up, a paltry 0.06%. Durable Consumer Goods & Services was down -0.67%; Industrials was down -0.77%; Basic Materials was down -1.05%; Financials declined -1.61%; Telecommunications Services was down -1.90% and Technology declined -2.39%.

For the week: Only two of the ten sectors gained. It was a week of market downward drafts. Energy was up 1.76% and Basic Materials was up 0.99% for the week. Discretionary Consumer Goods & Services was down -0.77%; Industrials was down -1.77%; Financials declined -2.09%; Telecommunications Services was down -3.06%; Durable Consumer Goods & Services was down -3.19%; and Technology declined -4.22%.

Industry Groups:  Auto & Truck Manufacturers advanced 24.18%; Retail – Apparel & Accessories was up 18.47% continuing the uptrend from last week; Textiles & Leather Goods gained 12.50%; Apparel & Accessories was up 2.60% and Casinos & Gaming was up 2.46%.

Today’s Statistics: Today, the declined issues (Decliners) outnumbered the gaining issues (Advancers). There were three Decliners for every Advancer or a more exact ratio of 3.04-to-1.0, significantly bearish. In real numbers, there were 1,487 Decliners to 488 Advancers while 132 stocks remained Unchanged.

Today, there were 67 new 52-Week Highs and 52 new 52-Week Lows. By comparison, there were 87 new 52-Week Highs and 25 new 52-Week Lows on Wednesday.

Today, the total volume of shares traded at the TSX was 418, 326,436, or 13% more when compared to the volume of 370,025,496 shares traded on Wednesday.

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The US Markets

All the three indexes ended the session in red – deep red, furthering the current bearish market sentiment. The Dow Jones Index declined -696.75 points or -1.63% to close at 41,938.45. The S&P 500 index declined -91.21 points or -1.54%, to close at 5,827.04. The Nasdaq Composite dived -317.25 points or -1.63%, to close at 19,161.63. All the indexes are now below the 50-day line in the charts. That does not bode well for investing. Both the Dow and the S&P 500 have remained below the 50 day line for some time and currently appears entrenched there.

The Market Breadth:   Friday, Energy, up 0.21%, was the only one of the eleven major sectors to gain at the day’s brutal market session gaining. Basic Materials, was down -0.72%; Healthcare was down -0.74%;  Discretionary Consumer Goods & Services declined -1.07%; Durable Consumer Goods & Services declined -1.61%; Industrials declined -1.68%; and Technology declined -1.81%. Telecommunications Services and Financials were the bottom performers declining -2.25% and -2.44% respectively. That the Financials sector was down -2.44% was a sign of how brutal Friday’s market session was. Goldman’s Sachs Group Inc. was down -3.48%; Morgan Stanley was down -3.45% and Bank of America was down -2.38%. All the big US banks declined on Friday.

For the week:  This was a bad week for stocks. Only three sectors gained during the week.  Energy was up 2.12%; Financials gained 1.85%; and Healthcare was up 1.26%. Basic Materials was down -0.12%; Technology was down -0.57%; Discretionary Consumer Goods & Services was down -1.79%; and Telecommunications was down -2.58%.

Industry Groups:  Appliances, Tools & Housewares, up 3.44%, was the leading industry on Friday; Airlines was up 2.91%; Marine Port services was up 1.88%; Tires & Rubber Products was up 1.61% and Oil & Gas Exploration & Production was up 1.02%. Technology was nowhere in the list of top performing industries on Friday.

Today’s Market Statistics:  At the NYSE, the declined issues (Decliners) completely outnumbered the gaining issues (Advancers). There were four Decliners for every Advancer or an exact ratio of 4.2-to-1.0. In actual numbers, there were 3,434 Decliners to 809 Advancers with 292 Unchanged.

Today, there were 45 new 52-Week Highs and 344 new 52-Week Lows – the market was totally bearish. By comparison, on Wednesday, there were 34 new 52-Week Highs and 173 new 52-Week Lows.

The total volume of stocks traded at the NYSE today was 1,128,704,184, or 6% less when compared to the volume of 1,199,120,403 traded on Wednesday.

On the NASDAQ, the Decliners outnumbered the Advancers. There were sixteen Decliners for every five Advancers at the market session today or a more exact ratio of 3.34-to-1.0. In actual numbers, 3,420 Decliners to 1,022 Advancers with 211 Unchanged.

Today, there were 65 new 52-Week Highs and 291 new 52-Week Lows.  By comparison, on Wednesday there were 59 new 52-Week Highs and 145 new 52-Week Lows. The bearish market sentiment continued and actually got worse today.

The total volume of shares traded at the NASDAQ today was 9,180,662,636, or about the same when compared to the volume of 9,136,872,021 shares traded on Wednesday.

Oil Price:    U.S. crude oil futures jumped Friday. Crude oil futures rose 1.46% today bringing Oil price to $78.04 as at the time (9:00 PM Sunday) of this post update.

10 –year Treasury Yield:  The 10-year Treasury yield fell touched 52-Week High on Friday bringing the stock markets crashing to their knees. Sunday (9:00 PM), the 10-year yield is down one basis point or -0.23%, to 4.76%.

Market Roundup Report:   The stock market suffered damaging losses last week, with the NASDAQ finally closing below the 50-day line and Treasury yields surging to 52-week high. The markets were bearish most of the week but got even more bearish on Friday. The bearish sentiment got worse. It appeared like the bulls were largely absent throughout Friday market session.

The markets are degraded. Unless the analysis is really compelling, it is best to avoid new buys in degraded and quite temperamental markets. Individual investor’s tolerance for risk will ultimately influence related decisions but typically, it is smart to place a hold on new buys until the market regains a more positive mood. As long as the 10-year yield remains high, investors should be careful with new purchases. The 10-year yield is considered high at 4%. It is quite high, investor caution time, at 4.7%.

It may be more profitable to spend the time pruning your watchlist while getting ready for the next rally which will come. The stock market is never in a perpetual state.

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Stocks In The News/Stocks To Watch

Our readers are reminded that the markets are currently damaged. All the indexes are below the 50 day moving average curve. The TSX and NASDAQ are just below the curve while Dow Jones and the S&P 500 indexes have been below that curve for some time. The stock markets will always do whatever they wish to do. The stock market performance at any session is quite a random result influenced by several factors, economic, political, unpredictable events and investors’ fear and greed etc. Our recommendation for safe trading is that this is not the time to be adding to positions. Of course, even on markets days with severe corrections some stocks would still record gains. We assume that our readers are investors not gamblers. The stocks discussed below are worth keeping an eye on for action when the markets’ mood become more positive.

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The Toronto Market

Aritzia Inc. (TSX:ATZ) stock was a top performer in 2024 and looks a possible repeat performer this year. This stock was the top performer on the TSX on Friday. ATZ stock advanced 19.07% or $10.87 to close at $67.86 with a volume of 2M shares traded on Friday. The Vancouver based company with a global offering of Everyday Luxury items online and at boutiques reported earnings on Thursday with net revenue up 24%.

Franco-Nevada Corp. stock (TSX:FNV) gained 0.32% or 0.58% to close the session at 183.35. The volume of shares was 315,838 which exceeded the 50-day average volume of 283,753 for the stock. The TSX dropped 1.22% on Friday so it was a tough market session. The FNV stock is currently forming a double bottom pattern with a buy point at $191.17. The pattern is not perfect. We shall keep an eye on it to see if the stock completes the pattern.

Gildan Activewear Inc. (TSX:GIL) was up 3.05% or $2.06 to close at $69.67 with a volume of 338K shares traded. The stocks is currently forming a flat base. The stock is worth keeping an eye on.

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The US Markets

Nvidia Corp (NVDA) suffered major declines this week. Nvidia was declined -3.00% or -$4.20 on Friday with a volume of 207M shares traded. You should never rule out NVIDIA out completely. AI is the “big thing” in Technology market currently and NVIDIA remains the main driver. There are, of course, competitors emerging all the time but dethroning NVIDIA will take some effort and time. The stock currently finds support around $128. It is not a bad idea to keep an eye on such a stock.

The earnings season start his week. Two big banks are due to report later this week. JP Morgan Chase (JPM) reports on Wednesday.

Taiwan Semiconductor Manufacturing Co (TSM) reports on Thursday. The company manufactures integrated circuits for practically all the big names in the IT industry, from NVIDIA to Apple Inc. and several others. The company is also engaged in Research and Development of 3 nanometer and 2 nanometer process technologies.  The TSM stock was up 0.60% or $1.25 with 17.3M shares traded on Friday. The stock is currently in consolidation.

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Regular Market Day Features

Beginner Investor’s (Canadian stocks) Watchlist

Blended Growth 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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Our reports are composed by humans after proper analysis and detailed research. It is neither AI nor machine generated. We do not, like AI, make things up.