The Stock Market At Close – Friday, October 6, 2023
The Toronto Market
Today, the TSX composite index today advanced 108.26 points, or 0.57%, to close at 19,246.07. The market built upon yesterday’s gain even slightly increasing the gain today compared to yesterday. If the market maintains a similar performance or better at Monday’s session then the market may be changing, even if temporarily, its current bearish market nature. However, given the current high rate of return on the 10-year yield, a lot of caution should be exercised with trades. Traders should be at the ready to reverse steps in order to avoid losses.
Technology led the gaining sectors with a gain of 1.54%. Basic Materials followed with a gain of 1.33% followed with a gain of 1.33%; Durable Consumer Goods & Services gained 1.09%; Energy gained 0.76% and Financials gained 0.49%. Healthcare sector declined a marginal -0.01%; The market was bullish today as risk aversion took a back seat and regular dividend paying sectors saw less patronage. Utilities sector was up only 0.13% and Telecommunications Services declined -0.24%.
The question remains if today’s bullish move will survive the relentless upward climb of the US 10-year yield. The indexes were up today and the 10-yield closed lower than its peak value but still managed to gain for the day. The Dow rallied to close up 0.9% but this index went below the previous lows earlier in the day.
For the week, Discretionary Consumer Goods & Services led the gaining sectors with 0.87%. Utilities gained 0.80%; Industrials gained 0.45% and Technology gained 0.37%. Energy was the worst performer for the week declining a muscular -3.36% as Oil price dropped about 8% during week. Healthcare declined -3.25% for the week; Basic Materials declined -2.25% and Financials declined -1.53%.
Today’s Statistics: The gaining issues (advancers) totally outnumbered the declined issues (decliners) today. The ratio of advancers to decliners was 2.57-to-1.00. In real numbers, 1,003 advancers to 390 decliners with 191 Unchanged. There were 11 new 52-Week Highs and 90 new 52-Week Lows.
The total volume of stocks traded today was 276,616,993 compared to 319,622,265 yesterday, a 13.6% decrease. Today’s volume of 276,616,993 is below the recent ten-market session average.
Today, roughly nine times as many stocks recorded new 52-Week Lows as recorded new 52-Week Highs. The market is still bearish. The NASDAQ is not evenly weighted for all the stocks in index. The big weight Technology stocks are assigned heavier weights on the index. Big gains and declines by the heavy weight technology during market sessions often have “exaggerated” effects on the NASDAQ index reflecting the relative weights of the those tech stocks. For example, NASDAQ may show big gains but the gains may be due to only four or five of the big Technology companies, while the majority of the technology stocks actually declined during the same market session.
The US Markets
The Dow Jones Industrial Average gained 288.01 points, or 0.87%, to close at 33,407.58. The S&P 500 climbed 50.31 points, or 1.18%, to close at 4,308.50. The Nasdaq Composite was up 211.51 points, or 1.60%, to close at 13,431.34. Today’s market was bullish with a broad spread across practically all the sectors of the market. The markets are trying to sustain a rally.
Technology led the gaining sectors gaining 2.08%. Utilities followed with a gain of 1.33%; Basic Materials gained 1.25%; Industrials gained 1.11%; Energy gained 0.98% and Healthcare gained 0.97%. Discretionary Consumer Goods & Services declined -019% and Telecommunication services gained -0.68%.
For the week, Technology was ahead with 3.17% gain for the week helped by Thursdays and Friday’s gains. Healthcare, with a gain of 0.57% was the only other sector to record a gain for the week. The worst performing sector for the the week was Energy. That was not surprising, however, given the big drop in Oil prices during the week. It was quite a difficult week for the market and most sectors ended up in the red for the week: Energy declined -4.24%; Utilities declined -2.82%; Durable Consumer Goods & Services declined -2.45% and Basic Materials declined -1.72%
The indexes made bullish gains and was backed by an increase in volume of shares traded. NASDAQ’s volume was 4,309M, a volume increase of 3.41% and NYSE’s volume of shares was 3,902M representing an increase of 8.95% over the previous day’s volume. The statistics, however, continue to paint a bearish picture.
A large number of stocks were already qualified as oversold and some heavily so, today’s relief rally must have been quite welcome by a large number of investors, a sort of what the doctor ordered. Some relief was needed and we got some. Will it last though? That is the million-dollar question especially given that the 10-yield still managed to gain six points for the day after declining from an early morning gain of about eighteen points. The indexes will probably continue to rise if the earnings season, starting next week, arrives with some good surprises.
Today’s Statistics: Today, the declined issues (decliners) outnumbered the gaining issues (advancers) on the NYSE . The ratio of decliners to advancers on the NYSE was 1.95-to-1. In real numbers 2,607 advancers to 1,331 decliners with 246 “Unchanged”. There were 40 new 52-Week Highs compared to 426 new 52-Week Lows. The total volume of volume-gaining stocks was 710,577,126 or 71.2%; the total volume of declined-volume stocks was 277,662,706 or 27.8%; and 10,393,782 or 1.0% “Unchanged”.
The total volume of stocks traded on the NYSE today was 998,633,614 compared to 931,178,403 yesterday, a 7.2% increase. Today’s total volume, of 931,178,403 shares traded was higher than the recent 10-day average of daily volume of shares traded.
Oil and the money markets: U.S. crude oil futures plunged 8.8% to $82.79 a barrel last week. Gasoline futures tumbled 8.6% last week and just over 19% for the past three weeks. They hit a 2023 low during the week. The dollar retreated for a third straight session.
10 –year Treasury Yield: The 10-year Treasury yield surged 21 basis points to 4.78%, but closed well off the morning’s peak of 4.89%.
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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