HomeStock MarketsThe Stock Market At Close – Monday January 23

The Stock Market At Close – Monday January 23

The Stock Market At Close – Monday January 23

The Toronto Market:

The TSX closed today, up 128.37 points, or 0.6%, to end the session at 20,631.58. The index reached its highest closing level since June 8 in “style” by maintaining the triple digit gain sequence it started Friday.

The market session was driven today by the feeling amongst financial analysts that the Federal Reserve will, at its meeting on interest rate decision on Feb. 1, will most certainly raise rates by 25 basis points, instead of the giant rate increases of 75 basis points which was the norm during 2022.

On the TSX, the Tech sector was up today as Shopify was up 8.8%. Shopify Stock is a big weight within the TSX index. The 8.8% gain by Shopify was the result of ratings upgrade by Deutsche Bank to “buy” from “hold”. The financials were up 0.8%. Oil was slightly lower today but tech and other sectors gave the TSX the uplift needed for the triple digit gain today – 128.37points to be exact.

Shopify Inc. Up 8.8% today

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The US Market:

Nasdaq was up 2% with a 6% increase in the volume of shares traded compared to Friday session

All three US benchmark equity indexes closed higher today extending Friday’s rally. High-growth technology stocks led the charge in making the high gains today. The main driver was the market analysts’ conclusion of a near certainty of a further slowdown in the pace of Federal Reserve interest-rate hikes. Traders are factoring in a more than 99% probability that the Federal Open Market Committee will raise rates by 25 basis points at its Feb. 1 policy meeting, A high interest rates atmosphere is not good for the stock market. If investors can make decent returns from less risky ventures why would they bother with the stock market and the attendant risks?

NASDAQ Composite gained a “meaty” 2% today to close at 11,364.4. The S&P 500 advanced 1.2% to 4,019.8. The Dow Jones Industrial Average gained 0.8% to 33,629.6. Technology posted the biggest increase among the sectors, followed by communication services, and consumer discretionary. Energy was the sole decliner today. The tech sector was up with a jump of 2.8%. According to analysts, the financial markets have priced in a 99.8% likelihood of a 25 basis point hike to the Fed funds target rate at the conclusion of its two-day monetary policy meeting.

Oil price was almost unchanged as the West Texas Intermediate crude oil futures were priced at $81.64 per barrel.

10 –year Treasury Yield:   The US two-year yield jumped 5.1 basis points to 4.23%, and the 10-year rate climbed 3.9 basis points to 3.52%.

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Stocks In The News/ Stocks To Watch:

Netflix Inc. (NFLX) was up at the market session on Friday by 8.46% or $26.72 with a volume of 28.4M shares changing hands. The stock followed that performance today by gaining 4.36% or $14.92 to close at $357.42 with a volume of 15.6M  shares traded.

The top gainer at the market today was Advanced Micro Devices (AMD), up 9.22%, to close at $76.53 on a volume of 84.3M. Truist Securities raised its price target on the chipmaker’s stock to $79 from $70. Deutsche Bank analysts said in a Q4 2022 preview released yesterday that they expect Q4 revenue of $5.53 billion, which is down 1% quarter-on- quarter but in line with the midpoint guidance of $5.2 billion to $5.6 billion. Advanced Micro Devices (AMD) ‘s Q4 results are projected to be in line with guidance from the company.

Tesla Inc. (TSLA) surged 7.8% as Chief Executive Elon Musk took the stand in his fraud trial related to a tweet saying he had backing to take the electric automaker private way back in 2018. Salesforce Inc. jumped 3.1% following news that activist investor Elliot Management Corp has taken a multi-billion dollar stake in the company.

Going by the chart, investors are moving back to TESLA

Medpace Holdings (MEDP) was up 4.53% on a volume increase of 79% compared to the market session on Friday. Planet Fitness Inc. (PLNT) was up 2.08% with a volume of 1.7M changing hands. That was 87% increase in the volume of shares traded compared to Friday.

JOB CUTS: Ford Motor Co (F) plans to cut up to 3,200 jobs across Europe and move some product development work to the United States, Germany’s IG Metall union said on Monday, vowing action that would disrupt the carmaker across the continent if the cuts go ahead. Rising costs for electric vehicle battery materials and projected slowdowns in U.S. and European economies are putting pressure on automakers to cut expenses. 

Spotify Technology SA joined the growing list of tech-related companies to announce impending job cuts, shedding 6% of its workforce as rising interest rates and the looming possibility of recession continue to pressure growth stocks. The music streaming company’s shares rose 2.1% today.

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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:

Our market report Friday, on EV, Energy and Resources alerted our readers that “Tesla (TSLA) is ready to make the move”. Tesla surged 7.8% today.

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