The Canadian Vanguard Stock Market Report At Market Close – Tuesday, January 7, 2025
.
Follow us for Data-Driven Analysis and Insights To Guide Your Trading and Smart Investing
.
The Toronto Market
The Toronto market index blinked again today. The TSX composite index declined -69.90 points or -0.28% to close the market session at 24,929.89.
The Market Breadth: Five of the ten major sectors gained today. Energy, up 1.28%, dominated the day. Telecommunications Services, was up 0.56%; Basic Materials was up 0.19%; and Healthcare was up 0.03%. Durable Consumer Goods & Services was down -0.13%; Discretionary Consumer Goods & Services was down -0.14%; Financials was down -0.38%; and Technology was down a whopping -4.54%. Shopify Inc. (TSX:SHOP) largely contributed to the Technology sector drop today.
Industry Groups: Oil was one of the few bright spots at the market today. Integrated Oil & Gas was up 2.78%; Oil & Gas Drilling was up 2.70%; Broadcasting was up 2.48%; Beverages – Non Alcoholic was up 1.57%; Oil Related Services & Equipment was up 1.28%.
Today’s Statistics: Today, the declined issues (Decliners) outnumbered the gaining issues (Advancers). There was three Decliners for every two Advancers or a more exact ratio of 1.51-to-1.0. In real numbers, there were 1,140 Decliners to 756 Advancers while 162 stocks remained Unchanged.
Today, there were 72 new 52-Week Highs and 26 new 52-Week Lows. By comparison, there were 121 new 52-Week Highs and 25 new 52-Week Lows on yesterday. The Toronto market was firmly bearish today. The market was truly negative, however, the drift towards a bearish mode started yesterday but got firmer today.
Today, the total volume of shares traded at the TSX was 347,953,845, or 11% more when compared to the volume of 312,771,159 shares traded yesterday.
.
The US Markets 
All the three major ended the session today in red. The Dow Jones Index was down -178.20 points or -0.42% to close at 42,528.36. The S&P 500 index declined -66.35 points or -1.11%, to close at 5,909.03. The Nasdaq Composite was down -375.30 points or -1.89%, to close at 19,489.68. The Nasdaq was the worst performer of the three indexes, all of which underperformed today.
The Market Breadth: The market breadth remains narrow. Energy, up 1.17% and Healthcare, up 0.48% were the only two of the eleven major sectors which ended the session with gains. Durable Consumer Goods & Services was down -0.18%; Basic Materials was down -0.23%; and Financials was down -0.37%. Telecommunications Services, down -0.75%, Discretionary Consumer Goods & Services, down -1.59% and Technology, down a hefty -2.03% were the three bottom performing sectors today. The same Technology stocks which gained at the last two market sessions and boosted Technology sector’s performance then declined today and brought Technology down to be the bottom performing sector.
Industry Groups: Rails & Roads – Passengers gained 3.40%; Tires & Rubber Products was up 2.44%; Oil & Gas Drilling gained 1.98%; Reinsurance was up 1.77% and Retail – Department Stores was up 1.69%.
Today’s Market Statistics: At the NYSE, the declined issues (Decliners) outnumbered the gaining issues (Advancers). There were two Decliners for every Advancer or an exact ratio of 2.13-to-1.0. In actual numbers, there were 2,829 Decliners to 1,325 Advancers with 325 Unchanged.
Today, there were 68 new 52-Week Highs and 107 new 52-Week Lows. By comparison, yesterday, there were 128 new 52-Week Highs and 63 new 52-Week Lows. The spread between the new 52-Week Highs and new 52-week Lows reversed today reflecting quite a bearish market session.
The total volume of stocks traded at the NYSE today was 1,199,120,403, or 8% more when compared to the volume of 1,108,204,751 traded yesterday.
On the NASDAQ, the Decliners outnumbered the Advancers. There were eleven Decliners for every five Advancers during the market session or a more exact ratio of 2.16-to-1.0. In actual numbers, 3,030 Decliners to 1,402 Advancers with 221 Unchanged.
Today, there were 95 new 52-Week Highs and 86 new 52-Week Lows. By comparison, yesterday there were 142 new 52-Week Highs and 56 new 52-Week Lows. The market reversed course and the outlook got quite bearish today. The market was negative today driven by large increase in volume of shares traded. There was obviously heavy selling. The sellers controlled the market today.
The total volume of shares traded at the NASDAQ today was 10,396,974,146, or 21% more when compared to the volume of 8,594,101,900 shares traded yesterday.
Oil Price: US crude oil price was back up 0.48% to close at 73.92 a barrel today.
10 –year Treasury Yield: The 10-year yield is at 4.68%, was up six basis points on the day and had earlier in the day been as high as 4.7%.
Market Roundup Report: The 10-year yield was up six basis points today reaching an eight month high. Yesterday, we asked in relation to NASDAQ; “How long can the index continue to defy the rise in the 10-year yield?” Interestingly an answer came from the market today – One day. However, there are good data now available supporting the idea that higher interest rates and higher market valuations can and do co-exist. Today, the 10-year yield rose and the market indexes predictably, NASDAQ especially got some shellacking – down -1.89%. This should not always be the case. We, however, have to wait to see if and when investors would move away from the old thinking that “Higher interest rates should always lead to lower valuation”.
Our readers who wish to read more about the idea that “Interest Rates Do Not Always Dictate Stock Prices” should visit Page B9 in the “Report On Business” section of January 7, 2025 edition of The Globe and Mail – Canada’s major daily Newspaper.
In the meantime, the current market remains ready to spin surprises. It is a good idea to take some profit from your portfolio before such evaporates given the current market outlook.
.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
Blended Growth Stocks Watchlist
Oil and Gold mining were the two bright spots at today’s bearish market.
EV, Energy and Resource Stocks Watchlist
IMPORTANT NOTICE
Readers are reminded that the market’s performance at the following day’s market session may completely differ from the market performance at the overnight markets.
SUBSCRIPTION Offer: We thank you for following our Stock Market reports but please be aware that we shall soon be restricting these articles to subscribers only.
We do not send this publication by email to readers. If you receive a copy by email please simply forward the email to us.
Our reports are composed by humans after proper analysis and detailed research. It is neither AI nor machine generated. We do not, like AI, make things up.
