The Canadian Vanguard Stock Market Report At Close – Wednesday, February 7, 2024
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Data Driven Market Analysis And Report For Tomorrow’s Winning Trades
The Toronto Market
The TSX composite index was up 11.44 points or 0.05% to close today’s market session at 20,969.18.
The TSX market session was negative as only two of the ten major sectors ended the session with gains. We deliberatively used the word negative rather than bearish. The TSX ended the day with a gain, relatively small at eleven points. The true picture is revealed after examining the various data pieces. The market session today did not readily qualify as bearish. The rally continues but the rally is “aging” and nothing keeps climbing forever. The rally is getting some help from the Bank of Canada senior executives. According to the news, they are discussing the interest rate cuts. The issue appears to be not about interest rate cut but when the cut or cuts will likely start.
The news today was that according to a summary of central-bank deliberations ahead of a Jan. 24 policy decision, while inflation is well above the Bank of Canada’s target of 2%, the minutes suggested officials were aware that keeping rates too high for too long could cause hardship for households and induce a “marked contraction” in economic activity. However, officials said they “did not want to lower interest rates prematurely, only to have to raise them again to get inflation” down to the 2% target. Senior Bank of Canada officials were unsure when they could begin cutting interest rates to help a weakened economy, as they worried shelter costs and strong wage gains could keep inflation elevated.
Technology sector was up 2.11%, thanks to Shopify Inc. which is a heavily weighted member of the TSX Technology sector and was up a muscular 4.29% today. Industrials gained 0.43%. There were no big declines as sector declines today ranged from Discretionary Consumer goods & Services which declined a negligible -0.01% to Utilities which declined -0.77%. Financials declined -0.06% and Energy sector declined -0.28%.
Beverages – Brewers, up 4.90% was the top performing industry. IT Services & Consulting was up 3.36%; Office Equipment was up 2.83%; Retail – Apparel & Accessories gained 2.50% and Insurance – Multiline was up 1.88%.
Today’s Statistics: The declined issues (decliners) outnumbered the gaining issues (advancers) today. The ratio was 1.01-to-1.0 or in practical terms for every advancer there was a decliner. In real numbers, 716 decliners to 711 advancers with 141 Unchanged. It was an even market especially given the relatively high percentage of “Unchanged”. The total volume of shares traded for gaining stocks was 109,243,435 or 44.1%; the total volume for declined stocks was 126,857,806 or 51.2% and 11,722,415 or 4.7% for “Unchanged”.
There were 185 new 52-Week Highs and 27 new 52-Week Lows.
The total volume of stocks traded at the TSX today was 247,823,656 compared with 305,553,671 yesterday, a 19% decrease. Today’s volume of 247,823,656 was far below the average of the ten most recent market sessions.
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The US Markets
The Dow Jones Industrial Average was up 156.00 points, or 0.41%, to close at 38,677.36. The S&P 500 was up 40.83 points, or 0.82%, to close at 4,995.06. The Nasdaq Composite gained 147.65 points or 0.95%, to close at 15,756.64. The S&P 500 relentless climb towards 5,000 point mark has been the story for several market sessions. It looks almost certain, nothing is certain with stock markets or at least nothing should be taken for granted, that the S&P 500 will cross that mark soon.
Today’s market session was positive with seven of the major sectors ending the session in green. Technology was the top performing sector with 1.38% gain. Industrial followed with 0.88% gain; Basic Materials gained 0.51%; Financials gained 0.16% and Utilities was up 0.08%. On the negative side, Energy was down -0.25%; Discretionary Consumer Goods & Services was down -0.30% and Telecommunication Services declined -0.80%. There were no big gains and no big declines.
Paper Products, up 3.18%, was the top industry performer; Construction – Supplies & Fixtures gained 2.89%; Semiconductors was up 2.57%; Chemicals – Agricultural gained 1.99% and Paper Packaging was up 1.81%.
Today’s Market Statistics: Today, the gaining issues (advancers) outnumbered the declined issues (decliners) on the NYSE by a ratio of 1.19-to-1 or for every six advancers there were five decliners. In real numbers, there were 2,167 advancers to 1,817 decliners and 265 “Unchanged”. The total volume of volume-gaining stocks was 515,637,361 or 49.7%; the total volume of declined-volume stocks was 509,878,663 or 49.1%; and 12,928,040 or 1.2% “Unchanged”.
There were 409 new 52-Week Highs and 80 new 52-Week Lows. It was a bullish market performance today. Yesterday, for comparison, there 266 new 52-Week Highs and 48 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 1,038,444,064 compared with 1,066,605,970 yesterday, a 3% decrease. Today’s volume of 1,038,444,064 is about two percent lower than the average of the ten most recent market sessions.
On the NASDAQ, the decliners outnumbered the advancers by a ratio of 1.32-to-1 or roughly for every thirteen decliners there were ten advancers. In real numbers, there were 2,452 decliners to 1,855 advancers with 305 unchanged. The total volume of volume-gaining stocks was 2,393,435,524 or 50.5%; the total volume of declined-volume stocks was 2,304,913,424 or 48.6% and 40,594,459 or 0.9% for “Unchanged”.
Today, there were 234 new 52-Week Highs and 144 new 52-Week Lows, compared to yesterday when there were 115 new 52-Week Highs and 131 new 52-Week Lows.
The total volume of stocks traded at the NASDAQ today was 4,738,943,407 compared with 5,202,253,217 yesterday, a 9% decrease. Today’s volume of 4,738,943,407 is ten percent lower than the average of the ten most recent market sessions.
10 –year Treasury Yield: The 10-year Treasury yield was up a few basis points to 4.13% today.
The market outlook remains trade with caution.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
Shopify Inc. (TSX:SHOP) had a 4.29% gain today. The SHOP stock carries a heavy weight within the Technology sector of the TSX and that propelled helped Technology sector to rank as the top performing sector. Nuvei Corporation (TSX:NVEI) had a 4.11% gain today.
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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