The Stock Market At Close – Tuesday, September 5
The Toronto Market
The Toronto TSX composite index declined -131.6 points, or -0.6%, to close at 20,413.76 today. It was a reversal of the trend on the past three sessions. It was beginning to look like the TSX was on the tear but all that rally came to an abrupt end today, even though TSX on Friday, posted its highest closing level since July 31.
Healthcare with a gain of 0.45% and Energy with a gain of 0.15% were the highest gaining two of the market’s major sectors to close with a gain today. Discretionary Consumer Goods & services was the third and it closed with a mere gain of 0.12%.
The Industrials sector fell -0.46% and heavily weighted financials were down -0.66%. Technology was down –0.8%. Basic Materials was the worst performing sector as Gold and Copper were down today. Energy was a bright spot, rising 0.6%, as oil settled 1.3% higher at $86.69 a barrel after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts.
Today’s Statistics: Today, the declined issues (decliners) totally outnumbered the gaining issues (advancers). The ratio of decliners to advancers was 2.61-to-1.00. In real numbers, 1,029 to 393 decliners with 201 unchanged. There were 74 new 52-week highs and 23 new 52-week lows. The total volume of shares traded for gaining stocks was 154,647,980 or 48.2%; the total volume for declined stocks was 160,101,419 or 49.9% and 6,416,230 or 2.0% for “Unchanged”.
The total volume of stocks traded today was 321,165,629 compared to 306,558,508 on yesterday. The volume of stocks traded today was up 4.7% compared to the volume on Friday. The markets were closed yesterday for Labor Day Monday holiday.
The US Market
The Dow Jones index declined -195.74 points, or -0.56%, to close at 34,641.97. The S&P 500 declined -18.94 points, or -0.42%, to close at 4,496.83. The Nasdaq Composite declined -10.86 points, or -0.08%, to close at 14,020.95.
The big markets’ driver today was the fact that Oil and Treasury yields were up. It is not good for the stock market when long term Treasury yields are not only up but keep increasing. The markets’ outlook will remain difficult to predict as long as the treasury yields with much lower risks offers return higher than or comparable to stock market returns.
When it comes to Oil price, it is hard to know where to draw the line between market forces and the effect of the war in Ukraine. In June, the Saudi Arabian Oil minister blamed speculators for the decline in Oil price at the time. He promised that “the speculators” will see trouble. The current Oil price increases are being driven by supply management by OPEC, led essentially by Saudi Arabia and Russia. Oil has gone up for eight straight consecutive market sessions.
Technology, up 0.28% and Energy, up 0.22% were the only sectors of the US market to gain at today’s market session. Healthcare sector finished the market session down -1.07%; Financials was down -1.11%; Utilities down -1.545 and Basic Materials, which was the worst performing sector today closed down -1.72%.
The decline at today’s market was broad based. Stock pickers should exercise some caution. The market may be changing character. The rally may be loosing energy.
Today’s Statistics: Today, the declined issues (decliners) outnumbered the gaining issues (advancers) on both the NYSE and NASDAQ. The ratio of decliners to advancers on the NYSE was 3.31-to-1. In real numbers, 3,030 decliners to 916 advancers with 254 unchanged. There were 91 new 52-week highs and 114 new 52-week lows. The total volume of volume-gaining stocks was 207,266,853 or 69.0%; the total volume of declined-volume stocks was 659,472,591 or 75.6%; and 5,610,145 or 0.6% “Unchanged”. Today, the market was very much lopsided in favour of declining issues.
The total volume of stocks traded on the NYSE today was 872,349,589 compared to 822,096,260 on Friday. The volume today was xxx% down from the volume yesterday. The volume today on the NYSE was about the usual daily average. Friday, the index was up but the volume was down. Today the index was down and the volume was up. The volume of declining issues lopsidedly outweigh the volume of gaining issues. That tells us a lot about this market. Investors may be dumping stocks and exiting positions. One market day’s performance does not provide enough data to make a call on the market but still it will be a smart move to be very cautious bring new funds in o this market.
10 –year Treasury Yield: The U.S. 10-year yield was up 8.9 basis points at 4.262% today.
Stocks In The News/Stocks To Watch:
Tesla Inc. (TSLA) may be forming a flat base. Whatever it is that the stock is up to, is still in the early stages. The stock managed to reverse most of Friday’s decline today. Tesla is increasingly facing stiff competition from Chinese EV manufacturers.
Shares of Airbnb (ABNB) rallied 7% while Blackstone added 3.6% on news that their stocks would join the S&P 500 index. Typically stocks selected to join the “select” few in the S&P 500index tend to rally for at least a few sessions after the selection. The selection is a mark that the stock is worthy of investments by the bigger investment companies.
Oracle Corporation (ORCL) shares rose 2.5% after Barclays upgraded the software company to “overweight” from “equal weight.”
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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