HomeStock MarketsThe Stock Market At Close – Monday November 28

The Stock Market At Close – Monday November 28

The Stock Market At Close – Monday November 28

The TSX was down today to close at 163.28 points, or 0.8%, at 20,220.49. The market today was all about the effect of the impact of China’s latest wave of lockdowns on the domestic and global economy, including the demand for resources. China is a major importer of material resources from Canada.

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Wall Street stocks also tumbled after rare street protests that erupted in cities across China over the weekend which were seen by some investors as a referendum against Chinese government’s zero-COVID policy.

In other related news, Crude oil fell to a 52-week low before bouncing back a bit. It traded at $76.75 per barrel, shaking off worries about China-driven demand destruction. OPEC+ meets next weekend to discuss production levels.

Asian and European markets lost ground in quiet action, with many bourses down around 1%.

The 10-year Treasury note yield was today literally flat at 3.69%. Open: 3.661%; Day High3.755%; Day Low3.65%; Previous Close: 3.709%;

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Stock In The News:

Shares of Shopify were up today with a gain of 4.4%. The company announced a record Cyber Monday sale in the United States. According to news from Reuters, spending on Cyber Monday, the biggest U.S. online shopping day, may hit a record $11.6 billion according to one preliminary estimate, as discounts on everything from pajamas to AirPods tempt shoppers to click “buy” despite the strain on household budgets from high inflation. Shopify is actually more of a marketing company than a technology company.

The estimate from Adobe Analytics predicts an increase of up to 8.5% from a year earlier. Much of the increase could be put down to inflation, which rose 7.7% in October, the lowest since January.

Shopify appears to be on the mend
Shopify (SHOP) 1 year Daily Chart. Looking at the chart, Shopify still has a long way to go!

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APPLE and COVID19 restriction in China

Apple fell 2% into the lunch hour. Bloomberg reported that unrest at the Foxconn plant in Zhengzhou could trigger a 6-million-unit shortfall in 2022 iPhone Pro production. And that number could grow if Covid19 restrictions are extended a few more weeks, according to sources.

HOUSEHOLD MONEY STRESS: Buy-now, pay-later orders rose 78% last week while revenue from those transactions soared 81%. This phenomenon highlights growing economic stress in American and possibly most of North American households. Sources are reporting that as “As Black Friday hit record spending online, we’re also seeing more prominent signs of a budget-conscious consumer this year.” It would certainly appear that “more shoppers are embracing the Buy Now Pay Later payment method more this year to be able to buy desired gifts for family and friends.” This trend should benefit retailers like Best Buy Inc. during the holiday season. Best Buy shares gained today and would likely gain more if the shoppers return. Pinduoduo, the Chinese low end ecommerce retailer was the leading Chinese stocks gainer today.

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The BITCOIN MALAISE: Is another one on the way out? Shares of cryptocurrency and blockchain-related companies, including Coinbase Global Inc, Riot Blockchain Inc and Marathon Digital Holdings Inc, were down about 2.5% each today following lender BlockFi’s bankruptcy filing, the latest casualty since FTX’s collapse earlier this month. Is another one ready to bite the dust? Bitcoin stumbled overnight and tested the $16,000 level once again. At the time of this writing Bitcoin was going at $16,270.50

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Regular Market Day Features

The Canadian Vanguard – Beginner Investor’s (Canadian) Watchlist:

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Stocks Seeing Heavy (Possibly Institutional) Buying:

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Stocks Seeing Heavy (Possibly Institutional) Selling:

China, Stocks and COVID19

China’s stocks on Monday suffered their worst day in a month and its currency also took a tumble, while global stocks came under pressure and oil prices slumped more than 3% as protesters made a show of civil disobedience unprecedented since President Xi Jinping assumed power a decade ago. Our Chines Stocks watchlist did a lot better. Pinduoduo (PDD: Nasdaq) a member of our Chinese stocks watchlist was up today 12.4%.

China’s markets have had a challenging year, suffering from a mix of political risk aversion in the wake of Russia’s invasion of Ukraine in February as well as worries over its economic growth given stringent COVID curbs and the fallout from its property sector woes. Chinese bond portfolios have posted outflows every month since Russia invaded Ukraine in February, totaling $105.1 billion over nine months, according to data from the Institute of International Finance (IIF). Chinese stock portfolios lost $7.6 billion in October alone, the most since March.

On Monday, the offshore yuan weakened against the dollar to 7.2468 and the risk sensitive Aussie dollar, which is strongly tied to Chinese growth, was the worst performing major currency, falling 1.61% to $0.6649. Protests against China’s strict zero-COVID policy and restrictions on freedoms have spread to at least a dozen cities around the world in a show of solidarity with rare displays of defiance in China over the weekend.

“Record cases across multiple cities are putting the (zero-COVID) policy to the test and the unrest highlights the enormity of the challenge facing President Xi Jinping and his commitment to zero-Covid policy,

The latest events will most probably reinforce the case for loosening the lockdown and reopening, If that happens Chinese stocks could see a 15-20% rally once China exits zero-COVID policy. In the short term things could be quite challenging with the markets especially between now and the when the reopening actually happens.

Canadian Vanguard Chinese Stocks Watchlist:

Pinduoduo (PDD) defied the market trend today. PDD was up 14.5% around noon but closed up 12.6%

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Popular EV, Energy and Resource Stocks at Today’s Market: