The Canadian Vanguard Stock Market Report At Market Close – Monday, January 27, 2025
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The Toronto Market
The TSX composite index declined -179.34 points or -0.70% to close the market session at 25,289.15. The TSX went through shellacking but prevailed to close off the day’s lows. The index brought eight consecutive gaining sessions to an end today – a good reminder to investors that nothing keeps climbing forever. The good news is that the index remains more 1% above the 25,000 level.
The Market Breadth: Investors took cover under the Telecommunications sector as the market went through a rout today. Telecommunications sector was up an impressive 2.60% today. Discretionary Consumer Goods & Services gained 0.08%. The remaining eight of the major sectors declined today. Technology was down -0.35%; Financials declined -0.37% and Industrials declined -0.39%. Durable Consumer Goods & Services declined -0.40%. Utilities declined -0.93%; Energy was down -1.18% and Basic Materials brought up the rear while down -2.68%.
Industry Groups: Textiles & Leather Goods was up 22.22%; Integrated Telecommunications Services was up 2.71%; Wireless Telecommunications Services was up 2.25%; Environmental Services was up 2.03%; and Tires and Rubber Products gained 1.84%. Investors took shelter within the Telecommunications industry today as the market suffered a severe decline during the session.
Today’s Statistics: Today, the issues which declined (Decliners) outnumbered the issues which gained (Advancers). There were three Decliners for every two Advancers or a more exact ratio of 1.56-to-1.0. In real numbers, there were 1,219 Decliners to 777 Advancers while 125 stocks remained Unchanged.
Today, there were 91 new 52-Week Highs and 24 new 52-Week Lows. By comparison, there were 165 new 52-Week Highs and 13 new 52-Week Lows on Friday.
The total volume of shares traded today at the TSX was 383,331,671 or 19% more when compared to the volume of 320,850,599 shares traded on Friday.
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The US Markets
The Dow Jones Index was up 289.33 or 0.65% to close at 44,713.58 today. The Dow index was the clear, undisputed leader of the major indexes. The S&P 500 index declined -88.96 points or -1.46% to close at 6,012.28. The Nasdaq Composite melted today. The index was down -612.47 points or -3.07%, to close at 19,341.83. Nasdaq has a problem maintaining the 20,000 level. Nasdaq was down a disastrous 3%, powered by a 23% jump in the volume of shares traded. That is a very bad sign. Investors dumped technology stocks with abandon at the market session today. Nasdaq was the clear laggard among the major indexes today. On Friday, we noted that investors were likely dumping stocks on the NASDAQ. The large volume of stocks traded today along with a record daily decline for the NASDAQ index confirmed that opinion about the market. There were other signals also.
The Market Breadth: Five of the eleven major sectors of the markets gained today in a mixed market. Durable Consumer Goods & Services, up 2.56%, lead the sectors. Telecommunications Services, up 2.19%, followed the leader. Healthcare was up 1.79%; Financials was up 0.37% and Discretionary Consumer Goods & Services was up 0.36%. Basic Materials declined -0.59%; Energy was down -1.18%; Utilities sector was down -4.07% and Technology collapsed -4.28% under the weight of the negative news about the high costs of AI development in the US when compared to similar technology developed relatively cheaply by the Chinese company – DeepSeek.
Industry Groups: The top five industries at the US markets were: Utilities – Water & Others which was up 5.56%; Personal Products gained 3.11%; Insurance – Property & Casualty was up 3.05%; Tobacco was up 2.95%; and Homebuilding was up 2.92%.
Today’s Market Statistics: At the NYSE, the number of issues which gained (Advancers) was greater than the number of issues which declined (Decliners). There were thirteen Advancers for every ten Decliners or an exact ratio of 1.33-to-1.0. In actual numbers, there were 1,609 Advancers to 1,204 Decliners with 42 Unchanged.
Today, there were 78 new 52-Week Highs and 21 new 52-Week Lows. By comparison, on Thursday, there were 255 new 52-Week Highs and 52 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 5,299,998,768 or 23% more when compared to the volume of shares traded on Friday.
On the NASDAQ, the Advancers outnumbered the Decliners. There were seven Advancers for every five Decliners or an exact ratio of 1.43-to-1.0. In actual numbers, 2,641 Decliners to 1,839 Advancers with 169 Unchanged.
Today, there were 92 new 52-Week Highs and 139 new 52-Week Lows. By comparison, on Friday there were 109 new 52-Week Highs and 56 new 52-Week Lows.
The total volume of shares traded at the NASDAQ today was 9,085,693,135, or 15% more when compared to the volume of shares traded on Friday.
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Stock in the News /Stock To Watch
The Toronto Market
Celestica Inc. was far from being “celestial” today as the stock collapsed completely, back to earth, in sympathy with the US market’s reaction to the news that a Chinese company, DeepSeek has developed AI technology comparable to and with probably better accuracy compared to implementations by US companies NVIDIA Corp (NVDA), Broadcom (AVGO) and others. Celestica collapsed -28.04% or $48.98 to close the session at $125.70 with 2.9M shares traded. Celestica had risen 30% since the beginning of the year. The company was the worst decliner on the TSX on Monday. It is likely though, that the stock is now oversold.
Canadian Pacific Kansas City Ltd. (TSX:CP) continues to execute well. Several retail companies stocks are looking good on the TSX. Two of those stocks are Aritzia Inc. (TSX:ATZ) and Gildan Activewear Inc.(TSX:GIL). The three stocks defied the down draft today at the TSX. CP stock is well above the 25 and 50-day lines and is getting close to being extended technically but not there yet.
The US Markets
The dominant news today was about NVIDIA Corp (NVDA). Nvidia Corp (NVDA) was down -16.97% or $24.20 to close at $118.42 with 818M shares traded today. Nvidia was the worst performer on the Dow today.
The news that triggered the major decline today was about a Chinese startup company – DeepSeek which apparently has developed AI technology comparable to and with probably better accuracy compared to implementations by US companies NVIDIA Corp (NVDA), Broadcom (AVGO) and others. The Chinese company was able to achieve the results with cheaper resources.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
Blended Growth Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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