The Canadian Vanguard Stock Market Report At Market Close – Wednesday July 24, 2024
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Your Data-Driven Stock Market Analysis
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The Toronto Market
Today, the TSX was down -174.18 points or -0.76% to close today’s market session at 22,639.57. It was a bearish day across all the North American markets today.
The market was bearish today as only two of the ten major sectors ended the session in green. Utilities was up 0.93% while Telecommunications Services was up 0.28%. The rest declined with Healthcare down -3.53%; Technology down -2.25%; Industrials was down -1.32% while Discretionary Consumer Goods and Services was down -1.10%. Basic Materials was down -0.74% while Financials was down -0.68% and Energy was down -0.18%.
The Bank of Canada governor announced a quarter point cut in interest rates but that news was practically ignored by the market, at least today. The US markets’ news dominated the day.
In the Industry groups, Consumer Electronics was up 19.23%; Computer Hardware was up 13.08% while Fishing and Farming was down 1.46%; Home Furnishing was up 1.28% and Utilities – Multiline was up 1.27%.
Today’s Statistics: Today, the declined issues (Decliners) outnumbered the gaining issues (Advancers). The ratio of Decliners to Advancers was 2.61-to-1.0 or just about five Decliners for every two Advancers. In real numbers, 1,032 Decliners to 394 Advancers with 106 Unchanged. The total volume of shares traded for gaining stocks was 64,420,480 or 22.3%, the total volume for declined stocks was 215,490,389 or 74.6% and 8,839,028 or 3.1% for “Unchanged”.
Today, there were 118 new 52-Week Highs and 14 new 52-Week Lows. Yesterday, there were 111 new 52-Week Highs and 6 new 52-Week Lows.
The total volume of shares traded at the TSX today was 288,749,897 compared to 233,363,976 yesterday. The volume today was 23% higher than the volume at yesterday’s market session and just about equal to the average of the ten most recent market sessions.
The US Markets
The Dow Jones Industrial Average declined -504.22 points or -1.25% to close the market session at 39,853.87. The S&P 500 was down 128.61 points, or -2.31%, to close at 5,427.13. The Nasdaq Composite dived -654.94 points or -3.64%, to close at 17,342.41. That is a major decline for the Nasdaq. We have to watch if the market mood is ready to change going forward. An almost 4% decline in one market session is bad for a stock but for an index it is a major event which calls for extra ordinary caution going forward.
Four of the major US sectors ended the session with gains. Telecommunications Services gained 0.95%; Utilities gained 0.74% while Healthcare gained 0.43% and Durable Goods & Services gained 0.13%. Energy sector declined -0.35%; Financials declined -1.34%; Basic Materials was down -1.45%; Industrials sector was down -2.09% while Technology was down -4.12%. Technology had a negative day at the market today. That pulled the NASDAQ index below the 50-day moving average line.
In the Industry groups, Marine Port Services gained 1.90%; Utilities – Multiline was up 1.34% ; Wireless Telecommunications Services was up 1.20%; Managed Health Care gained 1.13% and Tobacco was up 1.03%.
Today’s Market Statistics: Today, the declined issues (Decliners) totally outnumbered the gaining issues (Advancers) on the NYSE. The ratio of Decliners to Advancers was 4.40-to-1.0. It was a really negative market, a bearish market session. Today for every nine Decliners there were two Advancers – that is bearish. In real numbers, 3,292 Decliners to 749 Advancers with 273 Unchanged. The total volume of shares traded for gaining stocks was 248,498,314 or 24.2%; the total volume for declined stocks was 774,193,179 or 75.3% and 5,017,366 or 0.5% for “Unchanged”.
Today, there were 162 new 52-Week Highs and 60 new 52-Week Lows. Yesterday, there were 315 new 52-Week Highs and 317 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 1,027,708,859 compared to yesterday’s 876,334,565. Today’s volume was 17% higher than the volume yesterday and 3% higher than the average of the ten most recent market sessions.
On the NASDAQ, the Advancers prevailed over the Decliners by a ratio of 3.21 to-1 or roughly for every sixteen Decliners there were five Advancers. In real numbers, 3,242 Decliners to 1,009 Advancers with 285 Unchanged. The total volume of volume-gaining stocks was 2,856,041,808 or 41.2%; the total volume of declined-volume stocks was 4,053,774,581 or 58.4% and 30,364,363 or 0.4% for “Unchanged”.
Today, there were 171 new 52-Week Highs and 122 new 52-Week Lows. Yesterday, there were 241 new 52-Week Highs and 92 new 52-Week Lows. The NASDAQ was very much extended by the end of last week but the current rotation to small caps is slowly correcting the situation.
The total volume of stocks traded at the NASDAQ today was 6,940,180,752 compared to yesterday’s 5,212,926,320. Today’s volume was 1.33% times the volume yesterday, one third higher. Today’s volume was 20% higher than the average volume of the last ten market sessions.
Oil Price: U.S. crude oil prices continued its recent downtrend and was $76.94 a barrel as at the time of this report.
10 –year Treasury Yield: The 10-year Treasury yield, earlier in the day rose a few basis points but was down slightly to 4.259% as at the time of this report.
Market Roundup Report: We are back to the period where the indexes are up on days that the volume is down while the indexes decline with volume increases. The indexes suffered heavy declines today with increased volumes compared to yesterday. If that trend continues, then the markets will are getting in to the bear territory. It looks like we are far from that scenario. The current rally is very much alive but the occasional correction like the market today should be expected more frequently as the rally ages.
Stocks In The News/Stocks To Watch
The US Markets
The news today was mostly about Technology stocks and their big declines today. The so called “Magnificent Seven” stocks suffered major declines. Tesla (TSLA) and Alphabet (GOOGL), and to a lesser extent NVDIA (NVDA) stocks, contributed significantly to NASDAQ’s decline today. The three stocks, as part of the so called magnificent seven stocks, carry relatively heavy weights within the index and as such tend to have exaggerated effect on the index.
It is hard to predict how quickly the stocks will recover or bounce back but it will not be surprising if some of them take “some time to reenergize” or some some weeks of sideways movement before getting back to climbing again. Those big gains last year were driven by the arrival of AI and possibly should not be expected to continue at that level – simply just not sustainable.
The market also probably needs less monopoly. Technology is currently dominated by only a few companies – it is really a monopoly situation. That in itself stifles innovation.
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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