The Stock Market At Close – Monday, March 6
The Toronto Market
The TSX today declined -66.78 points, or 0.32% to close the session at 20,514.80.
The TSX was weighed down by resource and energy stocks. The energy sector and miners fell 0.9% each. Over the weekend, China, the world’s second largest economy, set a lower-than-expected gross domestic product target of 5%. China is a big importer of resources from Canada.
The US Markets
Equities started today’s market session in the positive territory but gave up earlier gains as yields on U.S. 10-year Treasury notes and the 2-year Treasury yield came back from an early decline following the release of data showing new orders for U.S.-manufactured goods fell less than expected in January.
Oil prices reversed from early losses to rise around 1%, as West Texas Intermediate futures traded above $80 a barrel. WTI futures traded around their recent highs.
The Dow Jones was up 40.47points, or 0.12%, to close at 33,431.44. The S&P 500 gained 2.78 points, or 0.07%, to close at 4,048.42. The Nasdaq Composite declined -13.27points, or -0.11% to close at 11,675.74.
Investors appear to be waiting on a couple of economic related data due later this week and the two day testimony of the Chairman of the Federal Reserve to congress starting tomorrow. Also, the US non-farm payroll reports will be released on Friday. The issue is what happens next with interest rate hikes in the US. Investors appear to have already factored in three rate increases this year. However, with labour market and economic data continuing to reaffirm the resilience of the economy, one cannot rule out fixed income vehicles becoming stronger at competing with stocks if interest rates hikes continue.
Shares of cryptocurrency-related companies were volatile after Silvergate Capital Corp pulled the plug on its crypto payments network and raised doubts about the company’s ability to stay in business.
On paper, the market today did not decline, except for Nasdaq with -13.27 points decline. The decline was marginal, however, the daily chart gives a better picture. The Nasdaq was up more than 1% at one point in the morning before gradually losing its gains. The indexes started the day high with Nasdaq up 1% in the morning. The market indexes declined from around midday continuously right to the very end and with increasing volume. Clearly the idea of gain today had no market support.
10 –year Treasury Yield: The 10-year U.S. Treasury yield rebounded settling at 3.98%.
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Stocks In The News/ Stocks To Watch
Apple Inc. (AAPL) was the big name stock in the news today. Apple stock gained after Goldman Sachs initiated coverage with a “buy” rating. The stock was up $2.80 or 1.85% to close at 153.83. Volume of shares traded was 87,558,028.
Artificial Intelligence stock C3.ai Inc. is a stock to keep an eye on but possibly it is not time yet to plunge in and splurge. It will, most likely continue to rise and even go to very high if the hype surrounding Artificial Intelligence continues. AI today, declined 3.93% or -$1.12 to close at $27.36 with a volume of 50.6M shares traded.
Solar stocks have been on the climb recently. Daqo New Energy Corp (DQ) rose 5.61% or $2.92 today closing at $54.94 with a volume of 2.2 Million shares changing hands. See the chart below, DQ may continue to climb if the market can get over the interest rate hike issue and not decline. Eighty percent of stocks follow the market on the average on any day. We shall keep an eye DQ. The volume action during the last five sessions has been quite supportive of the climb.
Talking about stocks following the market, we provide the daily chart for Macy’s Inc. The chart literally followed the daily chart of one of the indexes. The chart pattern when it relates to the indexes shows market uncertainty but with individual stocks, it is a bad sign.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
Royal Bank was up today. Resources were down . Oil was up today but the TSX was down.
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The Canadian Vanguard Chinese Stocks Watchlist
Daqo New Energy (DQ), Enphase Energy (ENPH) and Canadian Solar (CSIQ) remain stocks to watch in the solar space. Keep an eye out for our report on the CSIQ stock in our edition tomorrow. ENPH stock was beaten down for a while but it has recently been climbing.
EV, Energy and Resource Stocks Watchlist at Today’s Market:
Tesla declined today after offering further discounts in China.
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