The Stock Market At Close – Friday, September 29
Futures Update – as at Sunday, October 1st, evening – 10pm: Futures rose with the Government shutdown averted for 45 days. However, the 10-year Treasury yield also rose several basis points to 4.62% as of Sunday night.
Friday, September 29:
The Toronto Market
Today Friday, the Toronto TSX composite index declined -49.47 points, or -0.25%, to close at 19,547.27. The market is trying to rally but between the US 10-year yield at a high value and a possible US government shutdown, the rally appears stalling.
The market is definitely trying to rally and five of the ten major TSX sectors recorded gains at today’s market session. Technology sector led the gains with a healthy 1.68% gain. Basic Materials with a gain of 0.32%; Telecommunications Services with gain of 0.24% and Healthcare with a gain of 0.04% were the other gaining sectors.
Financials sector declined -0.53%; Utilities declined -0.66% and Energy sector was the worst performing sector with a decline of -1.05%.
For the week, Utilities was the worst performing sector with a -4.59% decline. Telecommunications Services followed with a -3.30% decline for the week. Energy was the best performing sector for the week with a weekly gain of 2.98%. Technology managed a 0.02% gain for the week.
Today’s Statistics: The gaining issues (advancers) outnumbered the declined issues (decliners) today. The ratio of advancers to decliners was 1.23-to-1.00. Today was relatively subdued compared to the gyrations of the last couple of market sessions. In real numbers, 765 advancers to 618 decliners with 197 Unchanged. There were 11 new 52-Week Highs and 69 new 52-Week Lows. The total volume of shares traded for gaining stocks was 129,035,548 or 38.3%; the total volume for declined stocks was 183,240,544 or 54.4% and 24,283,414 or 7.2% for “Unchanged”.
The total volume of stocks traded today was 336,559,506 compared to 333,481,718 yesterday, a marginal 0.1% increase. Today’s volume of 333,481,718 was a bit above the most recent ten-market session average.
The ratio of stocks receding to the 52-Week Lows remains high compared to the number of stocks reaching new 52-Week Highs but was a drastic improvement on the ratios of the stocks reaching new 52-Week High to those receding to new 52-Week Highs.
The US Market
The Dow Jones Industrial Average declined -158.84 points, or -0.47%, to close at 33,507.50. The S&P 500 declined -11.65 points, or -0.27%, to close at 4,288.05. The Nasdaq Composite gained 18.05 points, or 0.14%, to close at 13,219.32. The indexes gained earlier in the day but the gains evaporated as the market session progressed through the afternoon. NASDAQ managed to hold on to some of the gain up to the close of the market session.
Only three of the US market sectors gained today. Durable Consumer Goods and Services led the gaining sectors with a mere 0.35% gain while Technology had the least gain with a gain of 0.19%. Energy was the worst performing sector declining -1.64% for the session. The energy sector for the week gained 2.91%.
For the week, Utilities declined -6.40%; Durable Consumer Goods & Services declined -2.32% while Telecommunications Services followed with a decline of -2.11%.
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 1.23-to-1. In real numbers 1,786 advancers to 2,201 decliners with 273 “Unchanged”. There were 54 new 52-week highs and 142 new 52-week lows. The total volume of volume-gaining stocks was 489,478,473 or 42.5%; the total volume of declined-volume stocks was 645,487,349 or 56.1%; and 15,670,326 or 1.4% “Unchanged”.
The total volume of stocks traded on the NYSE today was 1,150,636,148 compared to 898,106,829 yesterday, a 28.1% increase. Today’s total volume, 1,150,636,148 of shares traded was higher than the recent 10-day average.
On the NASDAQ, the gaining issues (advancers) outnumbered the declined issues (decliners). The ratio of advancers to decliners was 1.05-to-1. In real numbers, 2,203 advancers to 2,091 decliners with 435 unchanged. There were 47 new 52-week highs and 168 new 52-week lows. The total volume of volume-gaining stocks was 3,156,617,317 or 59.8%; the total volume of declined-volume stocks was 2,054,757,954 or 39.0% and 63,785,550 or 1.2% for “Unchanged”.
The last few market sessions witnessed the decliners prevailing over the advancers so the reversal of that trend is in line with the idea that a rally may be trying to start. The US 10-year yield remains high and is still climbing here, a good idea for investors is be patient and take the time to watch and confirm when the market has indeed direction reverse has taken place before bringing new money to the market.
10 –year Treasury Yield: Treasury yields closed well off session lows. The 10-year yield dipped 2 basis points to 4.58%, while the two-year yield also slipped 2 basis points to 5.47%.
Stocks In The News/Stocks To Watch:
The Toronto Market
Toronto’s TSX index declined today but some Technology stocks managed to hold on to the gains earlier in the day. Shopify Inc (TSX:SHOP) appears to be in the very early stages of rebounding. The stock remains in our watchlist although it has a lot of work to do. Today, SHOP closed up $2.36 or 3.29% to close at $74.14 with 4.3M shares changing hands.
Electric Vehicles (EV) are increasingly gaining market share and according to some pundits and some governments, will one day dominate and replace fossil fuel vehicles. Wind and Solar energy are certainly not ready to step in and deliver the energy that will be required to power all the millions or billions of electric vehicles that will rule the market at that time. The demand for electricity that will be required to meet the EV needs will ultimately be generated by nuclear generators. It is hard to see how Uranium mining companies would not benefit. That brings us to Cameco Corp (TSX:CCO). The stock declined -$1.63 or -2.94% to close at $53.89 with 1.8M shares traded today.
All the big five banks declined today but the declines were mostly within 0.0% and 0.20% or the daily market noise range. It is always a good idea especially for income investors to keep an eye on the Canadian bank stocks. Purchasing the Royal Bank (TSX:RY), shares at $118.00 for example looks good and tempting and should be a good idea if the economy avoids a recession, however, if the recession arrives as happened in 2008, the purchase may turn out to be like catching a dropping knife. The current charts of pretty well all the big five Canadian banks need some work.
The US Market
China is the world’s second biggest market. There are thousands of stocks listed on the US market indexes so it should be effortless maintaining a watchlist and/or portfolios without any Chinese ADR in it. A young investor with “years to spare” should consider including one or two Chinese stocks for an international market spread for example. The Chinese government has made EV a major part of the future of country’s economy. There are at least two very capable and strong competitors to Tesla based in China. The dominant EV players in China are Tesla (TSLA), BYD (BYDDF) and XPeng (XPEV). Earlier this year, Tesla lowered prices a number of times as part of its struggle to maintain market share. Other candidates for possible inclusion in international market portfolio are e-commerce company, Pinduoduo (PDD) and FUTU Holdings(FUTU).
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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