The Stock Market at Close – Thursday December 1
The TSX index was up today 0.4% or 72.19 points, to close at 20,525.45. This is its highest closing level since June 9. The big story today was about the banks. The banks were mixed today with CIBC down 7.7%, while BMO rose 1.2% and TD Bank ended 2.6% higher.
US Market: Indexes ended the session mixed: Dow was down -0.56%; S&P 500 -0.09%, Nasdaq +0.13%
U.S. manufacturing activity shrank for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, and proved to be a trigger for investors to book profits following a rally in the previous session.
On inflation related considerations, the personal consumption expenditures (PCE) price index rose 0.3%, the same as in September, and over the 12 months through October the index increased 6.0% after advancing 6.3% the prior month. Excluding the volatile food and energy components, the PCE price index rose 0.2%, one-tenth less than expected, after gaining 0.5% in September. Focus will now shift to nonfarm payrolls data which is scheduled to be reported on Friday, with the ADP report on Wednesday suggesting cooling demand for labor.
Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 225,000 for the week ended Nov. 26. In related news, it appears that Traders still see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December, with the terminal rate expected to be under 5% in May 2023.
The selloff in Salesforce (CRM), a Dow component weighed on the Dow. Salesforce tumbled 8.3%. A co-CEO of the company plans to exit the company in January. Dollar General Corp also fell. The stock was down 8.7% after the discount retailer cut its annual profit forecast. Costco Wholesale Corp (COST) shed 6.6% after the membership-only retail chain reported slower sales growth in November.
The 10-year Treasury note yield: Current 3.68%; Open 3.661%; Day High 3.755%; Day Low 3.611%; Previous Close 3.701%;
Stock In The News:
Canadian Imperial Bank of Commerce (TSX:CM) was down as mentioned earlier by 7.7%.
Stocks falling by 7.7% in one single day presents an interesting advisory situation. Reports quoted some analysts saying “We believe NIM should remain under pressure over the next few quarters, as mortgage renewal spreads and higher funding costs take a toll.” CIBC is not alone in the problem of provision for bad debts due to the incessantly increasing interest rates by the Bank of Canada. See our market report yesterday.
Generally we strongly recommend, following the teachings of William O’Neal, publisher of Investors Business Daily (IBD), that investors sell when your holding depreciates by 8%. To know the reasoning behind this register for our investment training next time around. However, please read our disclaimer below. Readers are strongly advised to do further research before taking actions based on what they read at The Canadian Vanguard. We only strive to provide quality information to assist our reader’s investing decisions.
Stocks To Watch:
Five Below (FIVE) : The shares rose more than 12% today, the company yesterday posted forecast-beating Q3 results and boosted its fiscal 2022 guidance. The company reported late Wednesday fiscal Q3 net income of $0.29 per diluted share, down from $0.43 a year earlier. Analysts polled by Capital IQ forecast $0.15. The discount retailer’s fiscal Q3 comparable sales decreased 2.7%. Analysts polled by Capital IQ expected a decrease of 7.7%. For fiscal Q4, Five Below said it expects EPS of $2.93 to $3.09 on sales of $1.09 billion to $1.11 billion. Analysts polled by Capital IQ are looking for EPS of $2.94 and sales of $1.08 billion. For fiscal 2022, the company now expects EPS of $4.55 to $4.71. That compares with its prior guidance of $4.26 to $4.56. The company also said it now expects 2022 sales to be in the range of $3.04 billion to $3.06 billion. That compares with a range of $2.97 billion to $3.02 billion previously.
Mastercard (MA). This stock is worth taking a look at. We only add the chart. The reader should fill in the blanks.
Regular Market Day Features
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