The Stock Market At Close – Thursday, August 31
The Toronto Market
The TSX composite index declined -37.7 points, or -0.2%, to close at 20,292.62
Only three of the major TSX sectors ended the market session today in green. Technology, not only gain but gained a “hefty” 4%. A sector gaining 4% is not something we often see. The other two sectors to gain today were Healthcare and Discretionary Consumer Goods and Services. Healthcare sector gain was largely attributable to the news that the United States plan to start easing the curbs on marijuana use.
The Financials sector fell -0.70%. The Canadian Imperial Bank of Commerce declined -3.2% after reporting earnings today. Energy declined -0.26% and Basic Materials declined -0.45%. Industrials were down -0.64%.
Today’s Statistics: Today, declined issues (decliners) outnumbered the gaining issues (advancers). The ratio of decliners to advancers was 1.37-to-1.00. In real numbers, 569 advancers to 781 decliners with 243 unchanged. There were 58 new 52-week highs and 19 new 52-week lows. The total volume of shares traded for gaining stocks was 186,634,772 or 44.5%; the total volume for declined stocks was 221,854,445 or 52.9% and 11,210,934 or 2.7% for “Unchanged”.
The total volume of stocks traded today was 419,700,151 compared to 244,580,270 on yesterday. The volume of stocks traded today was up 71.6% from yesterday’s volume – almost three quarters as high as yesterday. Today was an almost exact reversal of yesterday as far as the number of declined stocks and advancing stock go.
The US Market
Today, the Dow Jones Industrial Average declined -168.33 or -0.48% to close at 34,721.91 points. The S&P 500 declined -7.21 or -0.16% to close at 4,507.66 points. The Nasdaq gained 15.66 or 0.11% to close at 14,034.97 points.
The good news today was that U.S. inflation data matched estimates, underscoring expectations the Federal Reserve could pause its monetary tightening regime. The core PCE price index, excluding volatile food and energy components, rose 4.2% in July, year-on-year, also in line with estimates.
The market may be poised to climb a bit given the data released recently. However, we must wait until tomorrow when more comprehensive non-farm payrolls data due is released, to get greater clarity on the Fed’s likely monetary path. The US Labor Department said in a report released by the department showed that weekly jobless claims for the week ended Aug. 26 fell to 228,000, compared with estimates of 235,000 claims. All these are pointing in the direction that the Feds push to reign in inflation is having the desired effects.
Today’s Statistics: Today, declined issues (decliners) outnumbered the gaining issues (advancers) the on both the NYSE and NASDAQ. The ratio of decliners to advancers on the NYSE was 1.04-to-1. In real numbers, 1,898 advancers to 1,970 decliners with 316 unchanged. There were 135 new 52-week highs and 38 new 52-week lows. The total volume of volume-gaining stocks was 524,578,899 or 41.8%; the total volume of declined-volume stocks was 715,051,579 or 57.0%; and 14,298,427 or 1.1% “Unchanged”.
The total volume of stocks traded on the NYSE today was 1,253,928,905 compared to 726,736,134 yesterday. The volume today was 72.5% higher than the volume yesterday. The volume today on the NYSE was much higher than the usual daily average. It is not often that the daily volume on the NYSE exceeds one billion. The S&P 500 and the Dow Jones index were down today while the volume was up. That normally would not be a good sign for the market. However, watch the index during the next coming session to see if the Dow Jones index will resume the up climb soon.
On the NASDAQ, the ratio of decliners to advancers was 1.27-to-1. The decliners prevailed today. In real numbers, 2,450 decliners to 1,935 advancers with 377 unchanged. There were 92 new 52-week highs and 103 new 52-week lows. The total volume of volume-gaining stocks was 2,352,793,358 or 49.7%; the total volume of declined-volume stocks was 2,348,588,843 or 49.6% and 36,846,339 or 0.8% for “Unchanged”.
The total volume of stocks traded today was 4,738,228,540 compared to 4,470,157,112 yesterday. The volume today was 5.9% higher compared to the volume yesterday.
10 –year Treasury Yield: The yield on the 10-year Treasury notes eased to 4.09%, lifting major growth stocks.
Stocks In the News/Stocks To Watch:
The Toronto Market
Colliers International Group Inc. (TSX:CIGI) gained $1.68 or 1.09% to close at $156.11 today. Volume was 195.7k. The volume was two and a half times the usual daily average. RBC Capital Markets, last week listed Canadian real estate investment trust companies with outperform ratings. Colliers International Group was one of the stocks in the list. The chart tells more of the real story.
Canadian Imperial Bank of Commerce (TSX:CM) declined -$1.78 or -3.22% to close at $53.54 today after releasing quarterly results. Volume of shares traded was 8.1M. At the US market CM declined -$3.11 or $1.27. Volume of share traded was 169% the volume of shares traded the previous market session. It is likely that the Canadian bank stocks will remain down for some time. The banks pay dividends so an investors could keep the stocks in the watchlist and strategically add to their portfolio from time to time. They could be down for some time and assuming the dividends remain close to the current amounts.
Shopify Inc. (TSX:SHOP) led the Technology stock gainers today with a gain of $8.68 or 10.7%. The company said Amazon.com Inc. would release an app in Shopify’s app ecosystem that would give U.S.-based merchants access to Amazon’s “Buy with Prime” option. Shopify closed at $89.80 today. Volume of shares traded was 6.4M.
The US Market
When the some sort of recession is around the corner the cheaper outlets such as Ollies Bargain Outlet Holdings Inc. (OLLI) tend to see larger and steady traffic. The discount retail chain now sees revenue in the range of $2.08 billion to $2.09 billion compared with a prior view of $2.05 billion to $2.07 billion. It about doubled comparable store sales growth expectations to between 4% and 4.5% from 2% to 2.8% previously expected. Shares of Ollie’s gained 2.5% in Thursday afternoon trade.
The company raised its forecast for full-year adjusted earnings per share to between $2.65 and $2.74 from $2.56 to $2.65. On average, analysts surveyed by Capital IQ are looking for revenue for the year ending Feb. 3 of $2.06 billion and same store sales growth of 2.7%. The consensus for normalized EPS is $2.63.
Today OLLI closed at $77.08 after gaining $2.20 or 2.94%. The volume of shares traded was 3.2M
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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