The Canadian Vanguard Stock Market Report At Market Close – Tuesday August 6, 2024
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Your Data-Driven Stock Market Analysis And Report
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The Toronto Market
The Toronto market, closed yesterday due to the civic holiday, missed the big sell-off by the other North American markets yesterday, but made up for it today. The TSX declined -248.27 points or -1.12% to close today’s market session at 21,979.36. The TSX has now recorded three consecutive sessions of major declines.
Telecommunications Services was the only sector on the TSX to end the session today with a gain. Utilities had a modest decline at -0.19%; Energy declined -0.41%; Industrials was down -0.88%; Financials declined -0.94% as all the big six banks declined today. Technology sector suffered another bruising session with a -1.36% decline. Durable Goods & Services declined -1.40%; Healthcare was down -1.75%; Discretionary Goods & Services declined -2.42% and Basic Materials declined -2.90%.
In the Industry groups, Paper Products gained 3.03% and Personal Products was up 1.66%. Both Leisure & Recreation and Heavy Electrical Equipment gained 1.19% each and Entertainment Production gained 1.00%.
Today’s Statistics: Today, the declined issues (Decliners) totally outnumbered the gaining issues (Advancers). The ratio of Decliners to Advancers was 5.57-to-1.0 or just about eleven Decliners for every two Advancers. In real numbers, 1,293 Decliners to 232 Advancers with 74 Unchanged.
The total volume of shares traded at the TSX today was 423,046,874 compared to 429,263,632 on Friday. The volume today was 2% lower than the volume at Friday’s market session and 1.29% higher than the average of the ten most recent market sessions.
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The US Markets
The US markets tried to recover from the major declines suffered during the last three market sessions by mounting a vigorous rally today. Stocks closed well off the day’s highs as the rally attempt faded a bit during the last trading hour. The Dow Jones Industrial Average gained 294.39 points or 0.76% to close the market session at 38,997.66. The S&P 500 advanced 53.70 points, or 1.04%, to close at 5,240.03. The Nasdaq Composite was up 166.77 points or 1.03%, to close the session at 16,366.86.
All ten major sectors ended today’s session in green. Telecommunications Services, up 1.45%, led the gains. Technology followed with 1.25% gain; Financials gained 1.23% and Industrials sector was up 1.18%. Discretionary Consumer Goods & Services was up 1.15%; Basic Materials gained 1.04%; Utilities, Healthcare and Energy sector gained 0.81%, 0.71% and 0.70% respectively. Durable Consumer Goods & Services gained 0.47%.
In the Industry groups, Pharmaceuticals – Generic & Specialty gained 5.58%; Advertising/Marketing was up 3.71%; Retail – Computers & Electronics was up 2.55%; Semiconductors was up 2.53% and Leisure & Recreation gained 2.39%.
Today’s Market Statistics: Today, at the NASDAQ, the Advancers prevailed over the Decliners by a ratio of 1.92 to-1 or roughly for every two Advancers there was one Decliner. In actual numbers, 2,816 Advancers to 1,462 Decliners with 250 Unchanged.
The total volume of stocks traded at the NASDAQ today was 5,909,617,044, down 14% compared to the volume at yesterday’s session.
Oil Price: US Crude Oil price edged up 0.20% or 0.15 to $73.35 a barrel as at the time of this post.
10 –year Treasury Yield: The US 10-year Treasury yield was at 3.906% as at the time of this post. The yield is up from yesterday’s close of 3.777%. The yield rebounded today after touching its lowest level in over one year.
Market Roundup Report: The US markets tried today to recover from the carnage of the last three sessions. A rally attempt started today, remains very much alive even though it faded a bit during the last hour of the session. One day of rally attempt is not enough data to confirm a market trend change. We need a few more sessions before we conclude that a real change in the market trend is taking place. We need to see a few sessions of successful rally attempts accompanied by increased volume before we confirm the rally and trust the market trend. This is more so given the degree of the carnage done and the speed at which the major declines happened.
The market must record a few sessions of gains accompanied by volume increases before we can confirm the uptrend. Good volume increase is evidence that the big players are returning to the market. It is always rewarding in the long run as an investor to be patient and let the market confirm the trend change with follow up gains accompanied by good volume before plunging in after market correction.
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Stocks In The News/Stocks To Watch
The US Markets
Meta Platforms (META) rallied today briefly climbing above $500 but retreated late in the session to close, up 3.86% or $18.36, at $494.09 with a volume of 21.0M shares traded.
Crowdstrike Holdings Inc. (CRWD) was up 4.5% to $232.05 after analysts at Piper Sandler upgraded shares of the cybersecurity company to Overweight from Neutral. The price target was cut to $290 from $310. The company appears to be on the way to full recovery from the recent software faulty upgrade problem.
Palantir Technologies (PLTR) rose 12% after second-quarter earnings and revenue beat analysts’ estimates, driven by, according to the company, an “unrelenting wave of demand from customers for artificial-intelligence systems that go beyond the merely performative and academic.” Palantir also issued strong revenue guidance for the third quarter.
Super Micro Computer (SMCI) tumbled late this evening, on an earnings miss and weak guidance. SMCI delivered earnings’ report after regular market close but the company missed analyst estimates for its fiscal fourth quarter. The stock fell in the after-hours market. Super Micro Computers specializes in water cooled rack assemblies for data centers – a necessity for most companies producing AI driven products. The company’s sales surged last year and early this year as cloud-computing companies ramp up investments in infrastructure to scale up to enable them support artificial intelligence applications. SMCI closed the regular market session today at $616.94, up 1.33% or $8.11. Volumes of shares traded was 11.1M. The company also announced a 10-for-1 stock split.
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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