The Canadian Vanguard Stock Market Report At Market Close – August 2, 2024 Weekend
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Your Data-Driven Stock Market Analysis And Report – August 2 – 4, Weekend.
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The Toronto Market
Friday was another day of big declines at the major North American markets. The session was a worse off follow-up to Thursday’s major market decline. The TSX sank -495.58 points or -2.18% to close today’s market session at 22,227.63.
The market today outdid the decline suffered on Thursday. The market mood has turned bearish as, just like Thursday, only two of the ten major sectors ended the session in green: Telecommunications Services was up 1.33% and Utilities was up 0.63%. Durable Goods & Services declined -0.73%; Discretionary Goods & Services declined -1.67%. Industrials sector declined -1.67%; Healthcare was down -2.05%; Financials was down -2.21% and Energy declined -2.62%. Basic Materials which very often prevailed on most bearish days, declined -2.67% and Technology sector suffered another bruising session with -4.79% decline.
For the week, Telecommunications Services was up 3.52%, while Utilities was up 2.36%. Technology declined -7.68%; Healthcare declined -3.49%; Financials was down -2.91% while Basic Materials declined -2.76% and Industrials declined -2.47%. Discretionary Goods & Services declined -2.14% Durable and Goods & Services declined -0.73%.
In the Industry groups, Textiles & Leather Goods gained 7.69%; Hotels Motels & Cruise Lines gained 2.55%; Wireless Telecommunications Services gained -1.42%; while Insurance – Multiline gained 1.33% and Integrated Telecommunications services gained 1.30%. Paper Products was the worst performing industry on Friday with 8.67% decline.
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The US Markets
The Dow Jones Industrial Average dived -610.71 points or -1.51% to close the market session at 39,737.26. The S&P 500 dropped -100.12 points, or -1.84%, to close at 5,346.56. The Nasdaq Composite dropped -495.58 points or -2.18%, to close the session at 16,776.16.
Only two of the major US sectors ended Friday’s session with gains: Durable Consumer Goods & Services was up 0.63% and Telecommunications Services gained 0.11%. The rest of the sectors declined. Utilities declined -0.17% and Healthcare declined -0.59%. Basic Materials down -2.22% was the top performer of the big decliners at the session. Industrials declined -2.25%, Technology declined -2.26%, Energy declined -2.44% while Financials was down -3.10% and Discretionary Consumer Goods & Services was down -3.96%.
For the week, four of the sectors gained: Utilities gained 2.90%; Telecommunications Services gained 1.09%; Durable Consumer Goods & Services was up 0.91% and Healthcare 0.46%. Basic Materials sector declined -2.75%; Technology was down -3.22%; Industrials was down -3.30%; Discretionary Consumer Goods & Services declined -4.16% and Financials sector was down -4.28%.
In the Industry groups, Marine Port Services gained 3.61%; Beverages – Brewers gained 2.20%; Managed Health Care was up 2.18% while Household Products was up 1.89% and Personal Products gained 1.82%. The two worst performing industries on Friday were Rails & Roads – Passengers and Retail – Catalog & Internet Orders with -7.90% and -8.51% declines respectively.
Today’s Market Statistics: Today, the declined issues (Decliners) outnumbered the gaining issues (Advancers) on the NYSE. The ratio of Decliners to Advancers was 2.9-to-1.0. or for every three Decliners there was one Advancers. In actual numbers, 3,119 Decliners to 1,067 Advancers with 260 Unchanged. The ratio of volume-gaining stocks to declined-volume stocks was roughly 1 to 4.
Today, there were 323 new 52-Week Highs and 183 new 52-Week Lows. Yesterday, there were 268 new 52-Week Highs and 47 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 1,368,843,040 compared to yesterday’s 1,657,748,561. Friday’s volume was roughly 10% higher than the volume on Thursday and 27% higher than the average of the ten most recent market sessions. This in line with the market performance during the past four to five weeks when the markets gained during sessions when volume was reduced and markets suffered big declines on days with increase in volume of shares traded.
On the NASDAQ, the Decliners prevailed over the Advancers by a ratio of 4.5 to-1 or roughly for every nine Decliners there were two Advancers. In actual numbers, 3,532 Decliners to 780 Advancers with 247 Unchanged. The ratio of volume-gaining stocks to declined-volume stocks was also roughly 1 to 4 at the NASDAQ on Friday.
Today, there were 113 new 52-Week Highs and 333 new 52-Week Lows. Yesterday, there were 111 new 52-Week Highs and 185 new 52-Week Lows.
The total volume of stocks traded at the NASDAQ today was 6,463,773,833 compared to yesterday’s 6,920,574,272. Friday’s volume was 7% lower than the volume on Thursday. Friday’s volume was, however, 10% higher than the average volume of the last ten market sessions.
Oil Price: Oil price declined 4.7% to $73.52 a barrel last week. Oil price is at $73.16 as at the time of this post – late Sunday evening. Oil price is currently at a two month low.
10 –year Treasury Yield: The 10-year Treasury yield was down 40 basis points for the week to 3.795%. The 10-year yield was down to the lowest since December low. The yield was further down and was at 3.767% as at the time of this post.
Market Roundup Report: The carnage at the markets which started Thursday continued on Friday with damages to the charts of a good number of previously promising stocks. This market gave plenty of signals that something was about to change. For a period of about a month, every market up day occurred with reduced volume whereas down days registered increased and often large volume.
It is important to preserve capital. If you must remain in the market then cut your loss early to preserve your capital for another day. The late Bill O’Neal, founder of Investor’s Business Daily, (IBD) always emphasized the 8% rule for good reason. When your stock falls below 7.5 to 8% of your cost, sell it off. When a stock falls below 8%, if the stock price goes up 8%, you will still be in the red because you will then be at 8% of your current position. A relevant question to ask yourself for further insight is – how often does a stock’s price rise 8% in one session?
Stocks In The News/Stocks To Watch
The Toronto Market
Most stocks currently damaged chart or chart that need more work. It is easy to advise to advise and investor to stay in cash and stay away from the market in the short term to await when the market works out the current turbulence. A good trader on the hand makes money in all markets – bearish or bullish. Our recommendation is that risk averse individuals, given the current market, should in the short term stay on the sidelines while this market continues to seek direction. However, if you wish to remain active, here is a Canadian stock that has so far defied the current market turbulence. Gildan Active wear Inc. (TSX:GIL) closed on Friday at $57.30, up 0.07% with 528k shares changing hands.
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The US Markets
The likelihood of interest rate cuts along with recession fears are the major factors currently driving this market currently. AI marketing has had its days. AI technology is here to stay and will surely have a big influence on our way of life in future. However, the marketing was a bit overblown and things are finally cooling down and becoming more realistic. Chips and Technology stocks which rode the big AI marketing promotion are now down drastically and featuring damaged charts. Most are currently between the 50 and 200 day moving average lines. Arm Holding Plc (ARM) and Tesla (TSL) are two of the many stocks that may return to climbing upwards again one day but for now feature damaged charts.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The financials were hit hard this past week.
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
The EV manufacturers’ stock are back to their losing ways. The buyers seem to prefer hybrids to pure Battery Electric Vehicles.
IMPORTANT NOTICE
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