The Stock Market At Close – Monday January 30
The Toronto Market:
Nothing goes up forever. The TSX ended down 142.37 points, or 0.7%, to close at 20,572.11. That is the TSX’s biggest daily decline this year. The market was due for a breather and today happened to be the day. The market was broadly down, it was down across all the sectors for the day.
U.S. crude settled down 2.23% at $77.90 per barrel and Brent settled at $84.90, down 2.03% on the day. The energy sector on the TSX settled 2.2% lower for the day. Technology was also down by 2.2%
The good news today was that even though the TSX was down triple digits, there were no major stock chart setups destroyed. The market was down but there is no evidence of panic selling.
The US Market
U.S. stocks slumped today. The Dow fell 260.99 points, or 0.77%, to close at 33,717.09. The S&P 500 lost 52.79 points, or 1.30%, to close at 4,017.77 and the Nasdaq Composite dropped 227.90 points, or 1.96%, to close the session at 11,393.81. It is relevant to note that Nasdaq was down -227.90 points but the volume of shares traded was down -24.29%.
It is also going to be an action packed week with : (i) Interest rate moving announcements from major Central Banks from North America to Europe, (ii) Corporate earnings reports from major tech companies: Apple, Amazon, Meta Platforms and similar mega giant companies.
A possible market-moving event is the Federal Reserve’s two-day monetary policy meeting starting tomorrow and ending on Wednesday. The market currently expects the meeting to end with the announcement of a bite-sized 25 basis point hike to the Fed funds target rate.
The Bank of England and the European Central Bank are poised to follow the Fed by hiking crucial interest rates by a more aggressive 50 basis points.
On the earnings front, Caterpillar Inc, General Motors Co, Pfizer Inc, United Parcel Service Inc and McDonald’s Corp are expected before Tuesday’s opening bell. Meta Platforms Inc waits in the wings on Wednesday, with Apple Inc, Amazon.com and Alphabet Inc on deck for Thursday.
Payroll data will be released on Friday. Markets will also grapple with a host of U.S. economic data, especially with the payroll report on Friday, culminating in Friday’s payrolls report for January. Investors see signs of weakening in the labor market as a key factor in bringing down high inflation.
Reports have it that economists will be analyzing the payroll report on Friday for evidence of where things are with respect to a looming recession recession. Obviously most economists live in a different part of town. Most small business owners will tell you that the recession is right here at the door simply going by sudden lack of ease with which customers pay for service.
In the money markets: The U.S. dollar gained ground against a basket of world currencies, crude prices plunged as the prospect of rate hikes and robust Russian exports dampened optimism over rebounding Chinese demand. The dollar index rose 0.334%, with the euro down 0.17% to $1.0848.
10 –year Treasury Yield: The 10-year yield was up for a third consecutive session. Benchmark 10-year notes were up 2.6 basis points to 3.544%, from 3.518% late on Friday.
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Stocks In The News/ Stocks To Watch:
Tesla was down 6.32% today, ending the session at $166.66. Tesla was up 11% on Friday following a gain of 10% on Thursday. Tesla closed at $109.10 on January 3rd this year. NVIDIA Corp. (NVDA) was down $12.03 or 5.91% on a volume of 48.9M
Netflix was down 2.12% or $7.66 to close at $353.11 with 5.1M shares changing hands.
U.S.-listed China stocks slipped today as reports fuel worries of fresh strain because of COVID. Alibaba Group Holding Ltd (BABA) was down 5.3%; Bilibili Inc (BILI) was down 8.1%; Pinduoduo Inc (PDD) was down 7.1%; JD.com Inc (JD) was down 5.6%. Crude prices plunged today as the prospect of rate hikes and robust Russian exports dampened optimism over rebounding Chinese demand. China, the world’s second-largest economy’s fiscal revenue growth decelerated sharply in 2022 to 0.6% from 10.7% in 2021, largely due to Beijing’s strict COVID-19 policies. Alibaba and JD.COM were down today partly because regulators rejected their plan for growth.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist:
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The Canadian Vanguard Chinese Stocks Watchlist:
When a stock declines by more than 8% of your purchase price, it is a good risk management strategy to consider selling the stock.
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EV, Energy and Resource Stocks Watchlist at Today’s Market:
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