The Stock Market At Close – Friday, September 1
The Toronto Market
The Toronto TSX composite index gained 252.74 points, or 1.25%, to close the market session today at 20,545.36. It was a week during which the market completely reversed last week’s downtrend. Last Friday, the TSX closed at 19,835.75. Two Fridays ago, the TSX closed at 19,818.39. Three Fridays ago, on August 11th, the TSX closed at 20,407.57. The highest session closing value this year by the TSX was 20,758 and that was on February 2nd.
Nine of the major sectors of the TSX gained today. The market breadth was broad based with Energy leading the charge today with a gain of 1.98%. Industrials sector followed with a gain of 1.25% today. Financials gained 1.19% while Technology gained 1.18%. This market currently has momentum. There were three days of triple digit gains, a minimum of 1.1%, this week. The market is being driven by domestic data that indicating an increased likelihood that the Bank of Canada will at the minimum pause interest rate hikes. Data released indicated that the economy unexpectedly contracted in the second quarter at an annualized rate of 0.2%. Growth was most likely flat in July. All these points at the likelihood that Canadians will likely get a reprieve from interest hikes by the Bank of Canada during the next meeting of the monetary policy committee of the bank.
On a weekly basis, Healthcare sector was the lead gainer gaining 6.52% for the week. Telecommunications Services gained 4.35%, Technology gained 3.33% while Energy gained 3.19%
Today’s Statistics: Today, gaining issues (advancers) outnumbered the declined issues (decliners). The ratio of advancers to decliners was 2.64-to-1.00. In real numbers, 999 advancers to 378 decliners with 181 unchanged. There were 102 new 52-week highs and 18 new 52-week lows. The total volume of shares traded for gaining stocks was 238,846,800 or 77.9%; the total volume for declined stocks was 59,895,126 or 19.5% and 7,816,582 or 2.5% for “Unchanged”.
The total volume of stocks traded today was 306,558,508 compared to 419,700,151 yesterday. The volume of stocks traded today was down 27% from yesterday’s volume.
The US Market
The Dow Jones Industrial Average rose 115.80 or 0.33% to close at 34,837.71 points. The S&P 500 gained 8.11 or 0.18% to close at 4,515.77 points. The Nasdaq Composite index declined -3.15 or -0.02% to close at 14,031.82 points.
Data released both in Canada and the US are indicating that the authorities might finally be winning the war against inflation. According to the US Labor Department’s report, the unemployment rate for August rose to 3.8% while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions.
The mood and expectations by investors and market participants were pointing in the direction that the central banks on both sides of the border are likely near the end of the interest rate hiking cycle.
Six of the ten major sectors in the US market gained today. The market spread was narrower on the US side but Energy led the charge today at markets on both (Canada and US) sides of the border. Basic Materials gained 1.07%, Financials gained 0.67%; Industrials gained 0.59%, Healthcare gained 0.45% and Technology gained 0.39. Discretionary Consumer Goods & Services was the worst performing sector today declining -0.62%.
For the week, Healthcare gained a whopping 21.5%. Telecommunication Services gained 5.59% for the week even though the sector declined -0.57% today. Technology sector gained 4.98% for the week. Energy gained 2.70% for the week.
Today’s Statistics: Today, the gaining issues (advancers) outnumbered the declined issues (decliners) on both the NYSE and NASDAQ. The ratio of advancers to decliners on the NYSE was 1.72-to-1. In real numbers, 2,420 advancers to 1,407 decliners with 290 unchanged. There were 157 new 52-week highs and 61 new 52-week lows. The total volume of volume-gaining stocks was 567,246,307 or 69.0%; the total volume of declined-volume stocks was 228,982,176 or 27.9%; and 25,867,777 or 3.1% “Unchanged”.
The total volume of stocks traded on the NYSE today was 822,096,260 compared to 1,253,928,905 yesterday. The volume today was down 34.5% compared to yesterday. The volume today on the NYSE was about the usual daily average.
On the NASDAQ, the ratio of advancers to decliners was 1.73-to-1. The decliners prevailed today. In real numbers, 2,731 advancers to 1,579 decliners with 360 unchanged. There were 103 new 52-week highs and 97 new 52-week lows. The total volume of volume-gaining stocks was 2,352,793,358 or 59.5%; the total volume of declined-volume stocks was 2,348,588,843 or 38.9% and 36,846,339 or 1.6% for “Unchanged”.
The total volume of stocks traded today was 4,100,524,148 compared to 4,738,228,540 yesterday. The volume today was 15.5% lower compared to the volume yesterday.
Stocks In The News/Stocks To Watch:
The Toronto Market
The number one stock to watch today is Canadian West Bank (TSX:CWB). CWB defied all the negatives of the big six banks this week. The National Bank said today that it has raised its price target on Canadian Western Bank (CWB.TO) to $33 from $28 on net interest margin (NIM) expansion and capital stability in the fiscal third quarter.
“11bps of NIM expansion was a positive shift, following several quarters of disappointing results,” the analysts said. Wider loan spreads and higher re-investment rates on maturing securities were the main drivers.”
Among the positive developments, National Bank noted that branch-raised deposits rose 3% quarter over quarter, including a 3% increase in branch notice and demand deposits.
“The bank expects additional NIM expansion during Q4/23, though not at the same level as what was delivered this quarter. We are maintaining conservative NIM forecasts (i.e., 1-2bps/quarter), given the unpredictable factors affecting spreads,” the analysts said.
The stock in the news is Whitecap Resources Inc.. (TSX:WCP). Whitecap Resources Kept at Buy at Stifel FirstEnergy as it Hikes Dividend; Price Target Raised to C$14.75. The company increases dividend by 26% and signs Co2 contract extension.
The US Market
The shares of Tesla Inc. (TSLA) declined 5% today after the EV maker cut prices for its Model S and Model X vehicles in the U.S. Tesla shares, at today’s market declined $13.07 or -5.06% to close at $245.01. Total volume of shares traded was 132.5M. Tesla Inc. was the most traded stock in the S&P 500 today, with $32.6 billion worth of shares changing hands at today’s market session.
Lululemon Athletica (LULU) gained 6% after the yoga wear maker lifted its annual profit and revenue forecasts for a second time.
Broadcom (AVGO) fell -$50.37 or 5.46% to close at $872.52 after the chipmaker projected current-quarter revenue below expectations. Volume of shares traded was 6.5M. Dell Technologies surged 21% after the personal computer maker raised its annual forecasts for revenue and profit.
Walt Disney dropped 2.4% and Charter Communications fell 3.6% after the companies traded salvos over an unresolved distribution agreement after several channels, including ESPN, went dark on Thursday for customers of Charter’s Spectrum cable service. Other streaming companies also fell, with Warner Bros Discovery slumping 12%, Paramount Global losing 9.5% and Fox Corp down nearly 6%.
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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