The Stock Market At Close – Wednesday, May 24
The Toronto Market
The TSX suffered a broad-based decline today. The index dropped below the psychological level of 20,000.00 falling to its lowest level in about two months. The culprit was the quarterly reports by two banks where they missed the analysts’ estimates. An indication of the broad decline was the 4.37 to 1 ratio (see Today’s Statistics below) between the declining and the gaining stocks. For every three stocks that gained there were thirteen that declined on the TSX.
The financials are weighted about 30% of the TSX index so when the financials experience sharp directional moves the effect on the index are often amplified. The leading sector on the TSX today was Non-Cyclical Consumer Goods & Services which was up 0.63% and was followed by Technology up 0.50%. Energy followed but declined -0.04%. The Financials sector was down -1.67% and the worst performing sector today was Basic Materials with a decline of -2.17%.
Signs that China’s recovery was slowing are becoming more evident. This will lead to reduced prospects for TSX’s resource-oriented sectors.
Today’s Statistics: Today, the decliners completely outnumbered the advancers. The ratio of declined issues to gaining issues was 4.37-to-1.00. In real numbers, 256 advancers to 1,118 decliners with 196 unchanged. There were 8 new 52 week highs and 34 new 52 week lows. The total volume of shares traded for gaining stocks was 59,378,801 or 20.2%; the total volume for declined stocks was 227,521,340 or 77.4% and 6,893,625 or 2.3% for “Unchanged”.
The US Market
The continuing saga regarding the delay in reaching an agreement over the US debt ceiling talks is beginning to have repercussions around the world. Most world markets dropped today on account of the possibility of a US default.
Time is running short for a resolution, and the Treasury Department has warned that the federal government could be unable to pay all its bills by as soon as June 1 – and it would take several days to pass legislation through the narrowly divided Congress.
Today’s Statistics: Today, the decliners prevailed over the advancers on both the NYSE and the NASDAQ. The ratio of declined issues to gaining issues on the NYSE was a 3.70-to-1. In real numbers, 3,106 decliners to 838 advancers with 303 unchanged. There were 22 new 52 week highs and 130 new 52 week lows. The total volume for gaining stocks was 188,460,884 or 21.7%; the total volume for declining stocks was 674,415,136 or 77.5%; and 7,125,775 or 0.8% “Unchanged”. Total volume of stocks traded was 870,001,795.
On the NASDAQ, the ratio of declined issues to gaining issues was 2.36-to-1 or in real numbers, 3,149 decliners to 1,334 advancers with 375 unchanged. There were 44 new 52 week highs and 122 new 52 week lows. The total volume of shares traded for gaining stocks was 1,327,030,498 or 31.4%; the total volume for declining stocks was 2,853,364,127 or 67.5% and 47,102,673 or 1.1% for “Unchanged”. Total volume of stocks traded was 4,227,497,298.
The S&P 500 posted three new highs and one new low.
Oil and the money markets: Brent crude futures rose more than a dollar to $78.36 a barrel, while U.S. West Texas Intermediate crude (WTI) likewise closed up $1.43 at $74.34 a barrel.
The U.S. dollar continues to gain against a basket of major currencies. The dollar index, which measures the currency against six major peers, rose 0.33% to 103.89, nudging further above a two-month high of 103.63 reached last week.
10 –year Treasury Yield: The 10-year U.S. Treasury yields edged down to 3.7361% today.
Stocks In The News/Stocks To Watch
The Toronto Market
Bank of Montreal (BMO) and Bank of Nova Scotia (BNS) shed 3.9% and 1.3%, respectively. The lenders reported smaller-than-expected quarterly profits as they set aside more rainy day funds as the economic outlook remains uncertain. The Bank of Montreal declined -$4.59 or -3.91% to close the day at $112.84 with 5.6M shares changing hands today. Scotia Bank (BNS) declined -$0.85 or -1.28% to close at $65.66 with a total of 3.4M shares traded.
Shopify gained today. The stock gained $1.41, or 1.79% to close up $80.18 with 8.4M shares traded, a good increase in the average daily volume for the stock. We shall keep an eye to see if this is a reversal of the down trend of the past eight sessions.
The US Market
NVIDIA Corp (NVDA) ended the market session today down -$150 or -0.49% to close at $305.38 with a volume of 72.1M shares traded. NVIDIA Corp reported earnings after regular market hours today and the report was very upbeat with sale of high powered chips for Artificial Intelligence (AI) implementation on the tear. The stock was trading with Bid/Ask quotes around $380 at about 6:50pm this evening. Readers are reminded that the performance of a stock in the afterhours market is not guaranteed to be repeated at the following day’s market session. These figures should be used as a guide only. It is likely that the growth stocks will not do badly at tomorrow’s market session but the market will do what it pleases when it pleases. Tech futures were also up.
Palo Alto Networks PANW gained $14.57 or 7.68% to close at $304.31, volume of shares traded was 17.0M.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
Signs that China’s recovery was slowing are becoming more evident. Some of the stocks in our watchlist have deteriorated and caution is called for. One should consider staying in cash until market improves. Cash is King at times like this.
EV, Energy and Resource Stocks Watchlist at Today’s Market
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