HomeStock MarketsThe Stock Market At Close – Thursday, May 18

The Stock Market At Close – Thursday, May 18

Stock Market Report for Smart Investors

The Stock Market At Close – Thursday, May 18

The Stock Market

There was no big economic news today from the Canadian side so the market was largely dependent on news emanating from outside of Canada, largely the US. There were statements from the Bank of Canada. The Bank of Canada said it was increasingly worried about the ability of households to pay off debts and is seeing signs of financial stress among some home buyers. In Canada, possibly not many people spend days endlessly speculating what the next step from the Bank of Canada will be.

Early in the week, the TSX posted its worst daily decline in about seven weeks but today the index ended up 0.66 of a point at 20,297.09 racking two consecutive days of gains.

The price of Oil and Gold are never constant. Spot prices are constantly changing. Price shown in this publication reflects the price as at the time of writing – typically around 6pm. Use the price for estimation only.

Today’s gain was really very marginal at two thirds of a point but a gain is a gain. The materials sector fell 1.4% as gold and copper prices declined. The energy sector advanced nearly 1% and industrials sector was up 0.8%. The heavily weighted financial sector continues to suffer occasional hangover from the effects of the U.S. regional banking sector crisis. The regional banks in the US appear to be on a long road to recovery.

Gold mining companies were largely down at the TSX today reversing the trend of up to a week and a half ago.

Today’s Statistics: Today, the decliners outnumbered the advancers. The ratio of declined issues to gaining issues was 1.15-to-1.00. In real numbers, 632 advancers to 725 decliners with 196 unchanged. There were 53 new 52 week highs and 26 new 52 week lows. The total volume of shares traded for gaining stocks was 121,066,641 or 41.0%; the total volume for declined stocks was 149,096,042 or 50.5% and 25,321,364 or 8.6% for “Unchanged”.

The US Market

The Dow Jones index gained 115.14 points, or 0.34%, to close at 33,535.91. The S&P 500 gained 39.28 points, or 0.94%, to close at 4,198.05. The Nasdaq Composite gained 188.27 points, or 1.51%, to close at 12,688.84 and establish a steady stay above 12,000 mark. The 12,000 level may become a support level in future but this market is not currently indicating that as a likely scenario in the near term.

Yesterday, President Joe Biden and McCarthy reiterated their aim to strike a deal soon to raise the $31.4 trillion federal debt ceiling and agreed to talk as soon as Sunday. Today the top U.S. congressional Republican Kevin McCarthy expressed optimism that a deal could be reached by the end of the week. The House could then vote on a bill the following week.

Top Federal Reserve officials said today that the economy does not appear to be softening fast enough for the central bank to pause its rate hike cycle. The comments point to a very likely hike in the US interest rates to 5.5 at the next Feds meeting which will take place on June 14. Analysts, today  pointed to a steady stream of better-than-feared earnings, positive developments around the debt-debate and data pointing to the Federal Reserve’s aggressive rate-hiking cycle taking hold and helping boost sentiment. Initial jobless claims fell more than expected pointing at a resilient job market.

Today’s Statistics: Today, the advancers prevailed over the decliners on both the NYSE and the NASDAQ. The ratio of gaining issues to declined issues on the NYSE was a 1.31-to-1. In real numbers, 2,216 decliners to 1,692 advancers with 270 unchanged.  On the NASDAQ, the ratio of declined issues to gaining issues was 1.15-to-1 or in real numbers, 2,376 decliners to 2,057 advancers with 406 unchanged.  

On the NYSE, there were 149 new 52 week highs and 83 new 52 week lows. The total volume for gaining stocks was 523,509,621 or 57.3%; the total volume for declining stocks was 382,804,781 or 41.9%; and 7,647,391 or 0.8% “Unchanged”.

On the NASDAQ, there were 120 new 52 week highs and 106 new 52 week lows. The total volume of shares traded for gaining stocks was 2,721,813,561 or 58.9%; the total volume for declining stocks was 1,818,988,350 or 39.4% and 77,699,685 for “Unchanged” or 1.7%. The S&P 500 posted 27 new 52-week highs and seven new lows.

Oil and the Money Markets: The U.S. dollar continued its big run over the past couple of weeks, hitting a two-month high. Crude oil continued its fall and traded at $72 per barrel. As at time of this writing Oil was down $71.81(-0.07%) and Live Gold spot price was $1964.00 per ounce down -$26.00.

10 –year Treasury Yield:  The yield on the benchmark 10-year Treasury note rose 6 basis points to 3.64%.

Stocks In The News/Stocks To Watch

Toronto Market

Bausch Health Companies Inc. shares climbed 14.6% in a two-day rally, following the favorable patent ruling by a Delaware court we mentioned yesterday.

National Bank of Canada’s brokerage upgraded its rating on Ritchie Bros Auctioneers Inc. to “outperform” from “sector perform”, sending the company’s shares up today. It gained 5.06% to close at $73.23. Ritchie Bros Auctioneers has now gained on two consecutive sessions.

Lightspeed Commerce Inc. tumbled by 10.7% on its worst day in over six months after reporting a weak quarterly sales forecast, citing caution on near-term macroeconomic pressures. Shares of luxury winter wear maker Canada Goose Holdings Inc. shed 10.2% after the company struck a cautious note on its U.S. business.

This stock may not stay down for long.

ATS Corp (ATS) gained 6.13% to close at $61.43. Bombardier gained 3.71% today to close at $60.06 and Birchcliff Energy gained 4.33 to close at $7.96.

The US Market

Growth stocks, really Tech leaders, led gains today, with Nvidia Corp, Apple Inc. and Microsoft Corp rising between 1% and 4.4%. Netflix Inc. surged 9.9% or $31.33 to close at $371.29, after saying it’s recently launched ad-supported tier reached nearly 5 million active users per month.

Netflix has more room to climb safely.
If the market reverses, VNDA will most likely reverse sharply.

Micron Technology Inc’s (MU)shares gained 5.0% as it plans to invest up to 500 billion yen ($3.70 billion) in Japan for new chips over the next few years. Shares of Walmart Inc (WMT)added 0.4% after the retailer raised its annual sales and profit targets, benefiting from inflation-wary consumers trading down to cheaper groceries. Take-Two Interactive Software Inc jumped 11.69% as it beat estimates for quarterly adjusted sales. FUTU Holdings (FUTU) saw an increase in volume of shares traded of 132% compared to yesterday but declined -6.66%. The Chinese stocks are not immune from US, China geopolitical conflicts so caution is called for when investing in Chinese ADRs in US markets.

MonoDB announced that it will report its first quarter fiscal year 2024 financial results for the three months ended April 30, 2023, after the U.S. financial markets close on Thursday, June 1, 2023. It climbed 2.56% or $7.22 today. MDB has gained $50 since May 4 (two weeks ago)

Broadcom Inc. (AVGO) gained $20.00 or 3.11% today to close at $677.90 with a volume of 2.6M traded. AVGO last touched $677 on Dec 27th, 2021.

Regular Market Day Features

Beginner Investor’s (Canadian stocks) Watchlist

The Canadian Vanguard Chinese Stocks Watchlist

EV, Energy and Resource Stocks Watchlist at Today’s Market

IMPORTANT NOTICES

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