The Stock Market At Close – Wednesday December 7
Toronto Market: The TSX Toronto’s composite index ended today’s session down 16.95 points, or 0.1%, to close at 19,973.22, its fourth straight day of declines and its lowest closing level since Nov. 17.
The Bank of Canada hiked its key policy rate by half a percentage point to 4.25%, the highest level since January 2008, but the TSX literally ignored the announcement. The market is counting that the end of this crippling era of unprecedented interest rate hiking is nearing the its end.
The energy sector fell 0.6% as the price of oil settled down 3% at $72.01 a barrel, its lowest level of the year, driven by a report showing bigger-than-expected increases in U.S. fuel stocks. The materials sector gained 0.8%
The US Market:
Dow Jones closed today’s market session practically almost at the same value it started the session at. It closed 1.58 points higher. The starting and closing figures, however, hide the real market story today. The market today was choppy. Volatility is the keyword to correctly describe the market action today.
The other US indexes closed down but in practical terms, really marginal. That was the good news. The problem today was the market choppiness – see Dow Jones today’s chart above. Volatility today was the highest since mid-November. The US dollar continues to maintain its high value relative to other currencies. Americans are the only souls in the world who are able to export their inflation to other countries at will. Everybody else is suffering but the American economy seems to be able to “defy gravity” so far, which in turns calls for increasing higher interest rate regime in order to tame the US inflation or to at least bring it down to Fed’s target value.
The S&P 500 declined for the fifth consecutive session to close down 0.19% or 7.34 points to close at 3,933.92. The Nasdaq declined for the fourth straight session by 56.34 points to close at 10, 958.55. U.S. crude oil prices fell again today, settling at the lowest level so far in 2022.
Stock In The News:
When it comes to individual stocks Apple was down, Tesla, also did its usual stuff, it was down. Tesla has been declining steadily for some sessions now. However, the ultimate bad stock today was Carvana Co (NYSE: CVNA). Today, the used car retailer recorded the worst-ever daily drop for a stock. losing nearly half its stock value, after an analyst company downgraded the company’s stock to “underperform” from “neutral” and slashed its price target to $1. CVNA declined 42.92% to close at $3.83 on a volume of 118.5M. The average daily traded volume during the past one year is 2million. A year ago the stock was trading at $274. The lowest stock price during the last 365 days was $6.50.
Tesla was down as mentioned above.
Apple stock is not doing great either. The only reason we would not put APPL on “HOLD” is because it is Apple.
We featured Avis Budget (CAR) last week. The stock has been declining for several sessions creating the advance warning about things possibly being not so good with the travel industry. Today the market confirmed our suspicion as travel-related stocks generally declined. Delta Air Lines and American Airlines Group were 4.4% and 5.4% lower respectively, with cruise line operators Carnival Corp and Norwegian Cruise Line Holdings, accommodation-linked Airbnb Inc. and Booking Holdings all falling between 1.7% and 4.4%.
Regular Market Day Features
The Canadian Vanguard – Beginner Investor’s (Canadian) Watchlist:
Stocks Seeing Heavy (Possibly Institutional) Buying:
Stocks Seeing Heavy (Possibly Institutional) Selling:
Lookout for our special article tomorrow on Biofuels and the ADM stock. Is ADM the stock for climate conscious Millenia investors?
Canadian Vanguard Chinese Stocks Watchlist:
It now looks more likely that the COVID19 restriction in China will be relaxed. That should have a positive effect on the Chinese ADR listed in the US markets. However, sometimes things take time to reflect. Bilibili Inc. (BILI) was up about 7.2% earlier in the session before settling to close up 5.64%
Popular EV, Energy and Resource Stocks at Today’s Market: