HomeStock MarketsThe Stock Market At Close – Tuesday January 24

The Stock Market At Close – Tuesday January 24

The Stock Market At Close – Tuesday January 24

The Toronto Market:

The TSX index ended the market session today marginally down by 2.03 points or 0.01% to close at 20,629.55. The TSX had closed yesterday at its highest closing value in seven months. Among the TSX’s major sectors, technology was down 1.1% and energy was down 1% as U.S. crude oil futures settled 1.8% lower at $80.13 a barrel, giving back some of its recent gains.

It is difficult to discuss the market daily performance, these days, without mentioning the Bank of Canada and the interest rate hikes the bank has engaged in to battle the current inflationary trend. Interest rate hike announcements always have big a impact on the market outlook and direction, reversals or gains. The Bank of Canada is expected to hike its key interest rate by a quarter of a percentage point to 4.5% on Wednesday and then hit pause on its tightening campaign, according to reports. The impact of tomorrow’s announcement will most likely be muted as the market has largely factored the 25 basis point increase into the market’s outlook.

Today at the market, shares of Magna International (TSZ:MG) slumped 7.2% after the automotive supplier cut its earnings margin outlook. That weighed on the consumer discretionary sector, which lost 0.7%.

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The US Market:

The S&P500 market was rocked by a technical glitch at the market opening bell today. More than 80 stocks were affected by the glitch, which caused wide swings in opening prices in dozens of stocks, including Walmart Inc and Nike Inc. The market recovered from the glitch, but trading remained in a relatively narrow range throughout the session. Among the 11 major sectors of the S&P 500, industrials led the percentage gainers, while communication services suffered the biggest loss.

U.S. crude oil prices fell 1.8% to $80.13 a barrel. Natural gas slumped 5.5% after rising more than 6% Monday.

Alphabet Inc. (GOOGL) shares dipped 2.1% after the Justice Department filed a second antitrust suit against Google parent Alphabet Inc. The DOJ sued Google over its online ad dominance, seeking to force the company to divest certain assets. In October 2020, the Justice Department filed an antitrust suit over alleged misuse of online search power. Groups of states have three antitrust suits against Google, including one involving advertising.

10 –year Treasury Yield:   The 10-year Treasury yield fell and ended at 3.47% amid mixed to weak manufacturing data, which is further evidence that giant interest rate hikes may be having negative effects on the economy. Industrial conglomerates 3M Co and General Electric Co both provided underwhelming forward guidance due to inflationary headwinds.

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Stocks In The News/ Stocks To Watch:

Magna International Inc. (TSX:MG), the Canadian global automotive supplier declined heavily today. The stock declined $6.32 or -7.22% to end the session at $81.25 with a volume of 1.5M shares changing hands.

Brookfield Business Partners LP. (TSX:BBU.UN) was up today $1.55 or 5.96% to end the session at $27.54 on a volume of 41.6K

Cheesecake Factory (CAKE) declined 8.01% to close at 37.65 down 3.28 or 8.01% with a volume increase of 167% compared to the previous session.

Featured Stock

Wayfair (W).

Wayfair’s (W) latest cost-cutting initiatives received largely positive views from analysts, with Wedbush Securities saying the move “greatly improves” the online home furniture retailer’s profitability outlook, while Oppenheimer said that the chances of the company facing a “worst case scenario” have reduced “meaningfully.”

On Friday, the retailer said it will eliminate nearly 10% of its global workforce to streamline operations and accelerate its timeline for breaking even on adjusted earnings before interest, tax, depreciation and amortization commitment. Wayfair said in August it would eliminate 5% of its global workforce.

Combined, the company expects the layoffs to lead to about $750 million of annualized cost savings. Wayfair also said its annual revenue trends improved in December, compared with the month prior. The company is scheduled to provide fourth-quarter results in February.

The cost-saving measures, improving sales trends and customer unit economics should help Wayfair get on the path of “profitable growth” in 2023 and beyond, Wedbush analysts including Seth Basham said in a Monday note, adding that the company should now “comfortably” reach breakeven EBITDA as early as the second quarter.

We have deliberately displayed a candlestick chart instead of the usual line chart to illustrate a point

The Wayfair stock had a big price jump yesterday with a huge volume. It was a gap up. Today though, the stock attempted to extend the gap up but closed at the lower end of yesterday’s price range. There is a special term for this, which you will learn about when you attend our training session in February. Clearly there is no support for further gap in price. This is a stock to keep an eye on to see how the things unfold for the stock going forward.

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Regular Market Day Features

Beginner Investor’s (Canadian stocks) Watchlist:

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The Canadian Vanguard Chinese Stocks Watchlist:

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

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