The Canadian Vanguard Stock Market Report At Market Close – May 24, 2024 Weekend
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Data Driven Stock Market Analysis And Report – May 24 – 26, Weekend Edition
The Toronto Market
The TSX was up 120.08 points or 0.54% to close today’s market session at 22,320.87. Volume was down on Friday casting some doubt on suitability of the day’s data for predictive analysis.
The market was broad-based positive on Friday. Basic Materials, up 0.85%, led the sectors. Financials gained 0.66%; Energy was up 0.60% and Utilities was up 0.20% while Technology was up 0.19%. Telecommunications Services, down -0.63% was the only one of the ten major sectors to close Friday’s session with a decline.
For the week, Energy, up 0.78%, was the top performing sector; Basic Materials gained 0.59%; Industrials was up 0.55% while Technology was up 0.47%.
Semiconductors was the top performing industry on Friday with a muscular 15.07% gain. Electrical Components & Equipment was up 4.85%; Apparel & Accessories was up 3.97%; Chemicals – Specialty was up 2.94% while Aluminum was up 2.70% to round up the top performing industries within the TSX at Friday’s market session.
Today’s Statistics: Friday, the gaining issues (Advancers) outnumbered the declined issues (Decliners). The ratio of Advancers to Decliners was 2.50-to-1.0 or in practical terms, for every five Advancers there were two Decliners. In real numbers, 988 Advancers to 394 Decliners with 109 Unchanged. The total volume of shares traded for gaining stocks was 200,742,864 or 69.6%, the total volume for declined stocks was 71,700,563 or 24.9% and 15,787,806 or 5.5% for “Unchanged”.
There were 56 new 52-Week Highs and 11 new 52-Week Lows. The rally is trying its best to stay alive. The big market decline on Thursday is a good warning to proceed with caution with any new buys.
The total volume of stocks traded at the TSX today was 288,231,233.
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The US Markets
The Dow Industrial Average was up a miserly 4.33 points or 0.01%. The S&P 500 gained 36.88 points, or 0.70%, to close at 5,304.72. The Nasdaq Composite was up a respectable 184.76 points or 1.10%, to close at 16,920.80 which is a record high. It is a good performance when an index is up 1% or higher, an index, except for Dow Jones, typically comprises 500 or well over a thousand stocks so it takes a good number of stocks performing well to add up to 1% or higher overall performance for that index.
The US markets were broad-based positive on Friday with nine of the major sectors ending the session with gains. Utilities led the sectors with 1.15% gain. Technology followed with 1.08% gain; Basic Materials gained 0.97%; Financials were up 0.91%; Industrials were up 0.64% and Energy was up 0.36%. Healthcare was the only sector to decline. The sector was down -0.18% which is relatively minor. It was good market session.
For the week, Energy, up 9.27% was the clear top gainer; Technology gained 2.25% and Financials gained 1.16% to round the gainers for the week. It was a tough week for stocks. The Dow Industrial average declined -2.3% for the week. Durable Consumer Goods & Services declined -1.97%; Basic Materials declined -1.69%; Utilities declined -1.56%; Telecommunications Services declined -0.85% and Healthcare was down -0.83%.
Marine Port Services, up 5.44%, was the top performing industry on Friday. Retail – Apparel & Accessories was up 4.41%; Retail – Computers & Electronics was up 2.90% while Paper Products industry gained 2.86% for the day and Footwear gained 2.64%. A few footwear companies had a good performance on Friday, Crocs Incorporated (CROX) was one of such companies.
Today’s Market Statistics: Friday, the gaining issues (Advancers) outnumbered declined issues (Decliners) on the NYSE. The ratio of Advancers to Decliners was 2.9-to-1.0 or in practical terms, approximately for every three Advancers there was one Decliner. In real numbers, 2,940 Advancers to 1,010 Decliners with 257 Unchanged. The total volume of shares traded for gaining stocks was 547,860,658 or 69.5%; the total volume for declined stocks was 226,530,373 or 28.7% and 13,801,855 or 1.8% for “Unchanged”.
There were 173 new 52-Week Highs and 53 new 52-Week Lows. The rally is alive but now in rather leisurely mode and most certainly not sprinting.
The total volume of stocks traded at the NYSE today was 788,192,886. Volume was down -22% compared to the total volume at the NYSE on Thursday.
On the NASDAQ, the Advancers prevailed over the Decliners today by a ratio of 1.86-to-1 or roughly for every two Advancers there was one Decliner. In real numbers, there were 2,769 Advancers to 1,487 Decliners with 273 Unchanged. The total volume of volume-gaining stocks was 3,819,649,716 or 63.2%; the total volume of declined-volume stocks was 2,192,905,060 or 36.3% and 35,734,481 or 0.6% for “Unchanged”.
There were 92 new 52-Week Highs and 114 new 52-Week Lows. This is bearish.
The volume of volume-gaining stocks was high compared to the volume for declined-volume stocks but that particular volume data is not a good indicator of the market performance spread.
NASDAQ practically made up for the big decline suffered on Thursday. Nvidia gave almost a repeat performance of the last earnings report when it reported late Thursday and that contributed to NASDAQ’s gain on Friday but even then it would appear the AI driven market performance is beginning to wear thin. The Dow index barely managed to stay positive on Friday.
The total volume of stocks traded at the NASDAQ today was 6,048,289,257. Friday’s market volume was less than the previous market session’s.
10 –year Treasury Yield: The 10-year Treasury yield was at 4.47%, up five basis points.
The market outlook remains Trade with Caution. Friday’s positive performance did not quite erase the Thursday major decline. A number of the Technology stocks doing well now appear extended which is something to watch out for. It may be smart to wait for some “localized” correction before plunging in.
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Stocks In The News/Stocks To Watch:
The Toronto Market
The Financial sector gained on Friday. Royal Bank (TSX:RB ) continues to gain as it has done since after absorbing HSBC. Manulife Corp (TSX:MFC) has also been on the uptrend in recent times. MFC appears to be in the early stage of building a flat base. The stock is worth keeping an eye on. Most financials stocks pay dividends so at least “something” is returned to the investor. The stock is also very liquid. The volume traded on Friday, for example, was 9.8M.
The US Markets
The Footwear industry did well on Friday. Crocs Incorporated (CROX) was up 4.42% or $6.30 to close the market session at $148.92. CROX stock is worth keeping an eye on in the near term. The stock is not one of the stocks with extended price.
Friday really belonged to Nvidia Corporation (NVDA) stock. NVDA is a stock to keep an eye on for the long term. It is hard to forget when NVDA stock was $15.00, some years back of course. The company only made video chips at that time. It was a video industry leader then but now the company is in the Tech industry leaders’ league – a totally different scale now.
Nvidia Corporation announced a 10:1 stock split to be effective June 10, 2024. The current stock price is over a thousand dollars and that type of stock price would normally keep away most small investors. The good news is that the reduced new stock price will make the stock accessible to a broader range of investors.
First Solar Inc. (FSLR) is another stock we think should be on your radar screen and possibly on your watchlist. The price looks short term extended and it might be wise to wait for some pullback depending on your level of risk tolerance. We provide two charts below to assist your decision making process. The top chart is our standard 3months, daily chart while the bottom chart is a one year weekly chart.
Pinduoduo, or officially PDD Holdings Inc. (PDD) is another stock to keep an eye on, both in the short and long terms. The stock spent the last several months building the base (or “a cup with a handle” – with due respect to the late Bill O’Neil of IBD) but now appears ready to maintain the breakout.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
PDD Holding Inc (PDD) and also FUTU Holdings (FUTU) are stocks worth keeping an eye on.
EV, Energy and Resource Stocks Watchlist
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