The Canadian Vanguard Stock Market Report At Market Close – Tuesday, January 28, 2025
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The Toronto Market
The TSX composite index gained 130.30 points or 0.52% to close the market session at 25,419.45. Today, the TSX, recovered some of the damage suffered yesterday.
The Market Breadth: Technology, up 5.96% was the top sector today. Shopify Inc. contributed to that success. Shopify is seen as a software company, likely to benefit from cheaper access to AI packages. Telecommunications sector was up 0.32%. Financials was up 0.28%; Basic Materials was up 0.22%; and Discretionary Consumer Goods & Services gained 0.03%. Durable Consumer Goods & Services and Utilities were the laggards today and were down -0.75% and -0.97% respectively.
Industry Groups: Textiles & Leather Goods was up 9.09%; IT Services & Consulting was up 8.27%; Beverages – Non Alcoholic was up 5.53% and Software was up 2.58%.
Today’s Statistics: Today, the issues which gained (Advancers) outnumbered the issues which declined (Decliners). There were six Advancers for every five Decliners or a more exact ratio of 1.28-to-1.0. In real numbers, there were 1,078 Advancers to 839 Decliners while 174 stocks remained Unchanged.
Today, there were 119 new 52-Week Highs and 24 new 52-Week Lows. By comparison, there were 91 new 52-Week Highs and 24 new 52-Week Lows yesterday.
The total volume of shares traded today at the TSX was 317,943,569 or 17% less than the volume of 383,331,671 shares traded yesterday.
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The US Markets
All the major indexes gained at the market session today. The Dow Jones Index was up 136.77 or 0.31% to close at 44,850.35 but NASDAQ was the top performer of the indexes today. The S&P 500 index advanced 55.42 points or 0.92% to close at 6,067.70. The Nasdaq Composite advanced 391.75 points or 2.03%, to close at 19,733.59. The 20,000 level remains a resistance level for the Nasdaq Composite. The markets have become quite unpredictable. There was a major decline yesterday but the markets on their tried to recover some of yesterday’s losses today. NASDAQ was the laggard, down more than 3.07% yesterday was up 2% today with no particular trigger event. We mentioned that the market was oversold yesterday, it appeared that investors slept over it and sent the indexes in the positive direction today. The indexes, however, only managed to recover fractions of yesterday’s huge declines.
The Market Breadth: Technology roared back a bit today after yesterday’s downdraft session. Only four of the eleven major sectors of the markets gained today in a mixed market. Technology, up 3.05%, was the top performer. Discretionary Consumer Goods & Services, up 0.34%, was next. The retail companies continue to do well. Financials gained 0.16% and Telecommunications Services was up 0.02%. Utilities was down -0.31%; Industrials was down -0.41% and Energy was down -0.55%. Basic Materials was down -0.64% and Durable Consumer Goods & Services was down -1.24%.
Industry Groups: The top five industries in the US markets were: Marine Port Services which was up 6.45%; Semiconductors gained 5.40%; Consumer Electronics was up 3.79%; Hotels, Motels & Cruise Lines was up 3.43% – Royal Caribbean Group was up 11.96% today after reporting earnings; Communications Equipment was up 3.31%.
Today’s Market Statistics: At the NYSE, the number of issues which declined (Decliners) was greater than the number of issues which gained (Advancers). There were eleven Decliners for every ten Advancers or an exact ratio of 1.13-to-1.0. In actual numbers, there were 2,166 Decliners to 1,918 Advancers with 315 Unchanged.
Today, there were 165 new 52-Week Highs and 46 new 52-Week Lows. By comparison, yesterday, there were 78 new 52-Week Highs and 21 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 4,566,299,628 or 14% less less than the volume of 5,299,998,768 shares traded yesterday.
On the NASDAQ, the Decliners edged out the Advancers. There was a Decliner for every Advancer or an exact ratio of 1.01-to-1.0. In actual numbers, 2,217 Decliners to 2,188 Advancers with 266 Unchanged.
Today, there were 125 new 52-Week Highs and 167 new 52-Week Lows. By comparison, yesterday there were 92 new 52-Week Highs and 139 new 52-Week Lows.
The total volume of shares traded at the NASDAQ today was 7,363,629,617, or 19% less less than the volume of 9,085,693,135 shares traded yesterday.
Oil Price: U.S. crude oil prices rose 0.8% to $73.77 a barrel.
10 –year Treasury Yield: The US 10-year Treasury yield closed at 4.55%, up 2 basis points from Monday’s close of 4.53%. The five-year yield rose to 4.34%.
Market Roundup Report: Still reeling from the effects of the news about AI development by DeepSeek company yesterday, the market responded well today to software producers which is one industry which is likely to benefit from cheaper sources or implementations of AI as such software would be able to easily integrate or incorporate such cheaper AI implementation into their applications. AI hardware stocks, however, managed to recover some of the declines from yesterday. The power generation companies did not fare much better today. The data centers will still need a huge amount of steady power but would probably not be as power-guzzling as previously imagined.
AI deployment will still need data centers which will in turn require steady, reliable power generation. The required power generation will certainly not be from solar panels. Nuclear power, especially based on small modular reactor types, will most likely benefit from the new development as steady power will always remain a necessity for data centers. Chips and Software Applications will still be required as customers would only be interested in vendors supplying applications that help them through their daily routines. Enterprise software companies are likely the ones to benefit most from the easily deployed and cheaper AI deployments. Most of the companies that saw their stock prices go up during the past year because of AI will most likely remain relevant to AI deployment or provider chains. The issues going forward would probably relate more to the quantity of deliverables to the AI deployment but not the degree of relevance of the companies. There will most likely be some rotation from Chip manufacturers to software players.
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Regular Market Day Features
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Blended Growth Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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