The Stock Market At Close – Wednesday, October 4, 2023
The market staged a rebound today but can it survive the 10-year yield relentless upward climb?
The Toronto Market
The Toronto TSX composite index gained 13.89 points, or 0.07%, to close at 19,034.81. Today’s market session was really choppy. The index declined right from the opening bell, then climbed back above the previous session’s closing mark; declined again over a two hour period; reversed to over the next two hours trace a “forty five degree” incline back up to close just a few points higher than the previous market session’s closing.
Indexes and Commodities at market close:
(Futures/Overnight market) Commodities at 10:30pm:
….. 
The TSX was up today by a paltry 13 points. However, looking at the market spread of the indexes sector gains, today’s market gains were pretty broad based. Only two sectors declined. Energy sector declined -2.56% which is quite a muscular decline for a sector. However, given the big drop in Oil price at the market today it is not surprising that the Energy sector was down at the TSX. A decline of 2% or higher for a sector is significant.
Utilities led the gaining sectors with a 1.69% gain. Technology followed with a 1.58% gain; Telecommunications Services gained 1.31%; Healthcare gained 1.04%; Discretionary Consumer Goods and Services gained 0.89%; Industrials gained 0.77% and Financials gained 0.74%. The stock market was possibly in an oversold territory. Some reversal was likely but not enough to drive. A market rebound is of course always welcome but given where this market is at, we shall believe it when we see it.
Today’s Statistics: The gaining issues (advancers) outnumbered the declined issues (decliners) today. The ratio of advancers to decliners was 1.79-to-1.00. In real numbers, 1896 advancers to 501 decliners with 216 Unchanged. There were 8 new 52-week highs and 153 new 52-week lows. The total volume of shares traded for gaining stocks was 151,548,655 or 47.4%; the total volume for declined stocks was 156,591,785 or 49.0% and 11,481,825 or 3.6% for “Unchanged”.
The total volume of stocks traded today was 319,622,265 compared to 333,481,718 on Monday, a 4.3% decrease. Today’s volume of 319,622,265 was close to the past ten-market session average.
Today, nineteen times as many stocks as recorded new 52-Week Lows recorded new 52-Week High. The market is still very bearish. The NASDAQ is not evenly weighted for all the stocks in the index. The big weight Technology stocks are assigned heavier weights on the index. Tesla is regarded as a Technology stock for this purpose. Tesla was up today and contributed to the big gain by NASDAQ today. Today’s rebound is welcome but for now it is no more than a one session reversal from oversold market conditions.
The US Markets
The Dow Jones Industrial Average gained 127.17 points, or 0.39%, to close at 33,129.55. The S&P 500 gained 34.30 points, or 0.81%, to close at 4,263.75. The Nasdaq Composite was up 176.54 points, or 1.35%, to close at 13,236.01. It was a volatile market session.
Nine of the US markets’ ten major sectors made gains today. The Energy sector was the lone sector to decline. It declined a hefty 3%. Durable Consumer Goods & Services led the gaining sectors with a gain of 1.31%. Technology followed with 1.30% while Financials was next with 0.71%. Industrials and Basic Materials gained 0.56% and 0.47% respectively.
Today’s Statistics: Today, the gaining issues (advancers) outnumbered the declined issues (decliners) by a good margin on both the NYSE and NASDAQ. The ratio of decliners to advancers on the NYSE was 1.45-to-1. In real numbers 1,376 advancers to 1,638 decliners with 271 “Unchanged”. There were 24 new 52-Week Highs and 402 new 52-Week Lows. The total volume of volume-gaining stocks was 560,575,682 or 56.9%; the total volume of declined-volume stocks was 408,701,530 or 41.5%; and 15,351,415 or 1.6% “Unchanged”.
The total volume of stocks traded on the NYSE today was 984,628,627 compared to 898,106,829 on Monday, a 9.6% increase. Today’s total volume of 984,628,627 shares traded was higher than the recent 10-day average.
On the NASDAQ, the advancers prevailed convincingly today. The ratio of advancers to decliners was 1.33-to-1. For every thirteen advancers there were ten decliners. In real numbers, 2,467 decliners to 1,850 advancers with 383 unchanged. There were 25 new 52-Week Highs and 455 new 52-Week Lows. The total volume of volume-gaining stocks was 2,815,287,318 or 63.9%; the total volume of declined-volume stocks was 1,537,350,312 or 34.9% and 51,798,172 or 1.2% for “Unchanged”.
The total volume of stocks traded today was 4,803,797,346 compared to 4,803,797,346 on Monday.
10 –year Treasury Yield: The US 10-year Treasury yield closed at 4.744% up one basis point. Treasury yields retreated from multi-year highs after a weaker than expected ADP job report.
Stocks In The News/Stocks To Watch:
The Toronto Market
The market correction has been quite severe. Most stocks are sporting damaged charts. Only a few stocks have been able to defy the market’s persistent downtrend during in September. One such stock on the TSX is Badger Infrastructure Solutions Ltd. (TSX:BDGI). The stock actively participated in today’s market’s rebound, gaining $1.27 or 3.85% to close at $34.27. Volume of shares traded was 72.6K. We shall keep an eye BDGI next the next several market sessions.
The US Market
Tesla Inc. (TSLA) was a big performer at today’s market. Tesla’s performance surely contributed to NASDAQ index’s gain today. Tesla rocketed out of starting blocks at the opening bell and never looked back. TSLA gained $14.63 or 5.93% to close at $261.16. Volume of shares traded was 129.7M. Incidentally, BYD company (BYDDF), a major EV manufacturer and a fierce Tesla competitor declined 2.39% today.
Rivian Automotive Inc. (RIVN) is a rather smaller EV manufacturer compared to Tesla but it is owned by Amazon so growth funding and ideas should not be problems for the company. RIVN gained $2.00 or 9.22% to close at $23.69 with 48.6M shares changing hands today. RIVN should be good investment for younger investors. However, for now the market is in a downtrend so it may be sufficient to just keep an eye on the stock or add it to the watchlist. The stock is already a member of the Canadian Vanguard’s EV, Energy and Resource Stocks Watchlist.
We last week listed MCKESSON Corp (MCK) as a Stock To Watch or stock to keep an eye on. MCK stock remains one of our highly recommended stocks both for short term and long term investment.
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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