The Canadian Vanguard Stock Market Report At Market Close – Wednesday, May 8, 2024
Data Driven Stock Market Analysis And Report
The Toronto Market
The TSX declined -31.46 points or -0.14% to close on Wednesday’s market session at 22,259.16. The market opened by over two hundred points lower in the early morning before steadily gaining throughout the day to almost practically erase the deep loss of the morning session. The index closed well off session lows. Interest rate considerations appeared to dominate the morning session.
The market on Wednesday was quite positive as seven of the TSX’s major sectors advanced. Durable Consumer Goods & Services led the sectors with1.14% gain; Utilities gained 0.92%; Financials gained 0.78% while Energy was up 0.54%. Basic Materials which was very often the leading sector during the past few weeks declined -0.18%. Healthcare declined -0.28% and Technology declined -7.63%. The Technology decline was largely due to Shopify. The company announced earnings result earlier today after which the share prices plunged over 18%. Shopify is heavily weighted within the TSX Technology sector.
Forest & Wood Products was the leading industry on Wednesday with 4.77% gain. Computer Hardware was up 3.12%; Electrical Components & Equipment was up 2.72% while Casinos & Gaming was up 2.29% and Heavy Electrical Equipment was up 1.65%.
Today’s Statistics: Today, the declined issues (Decliners) prevailed over the gaining issues (Advancers). The ratio of Decliners to Advancers was 1.22-to-1.0 or in practical terms, for every two Decliners there was one Advancer. In real numbers, 751 Decliners to 613 Advancers with 117 Unchanged. The total volume of shares traded for gaining stocks was 190,175,491 or 59.3%, the total volume for declined stocks was 120,650,011 or 37.6% and 9,762,907 or 3.0% for “Unchanged”. Although the Decliners outnumbered the Advancers, given the volumes, today was certainly not bearish.
There were 91 new 52-Week Highs and 7 new 52-Week Lows. Further confirmation that today’s session would certainly not qualify as bearish.
The total volume of stocks traded at the TSX today was 320,588,409. Today’s volume of 320,588,409 was two percent higher than the average of the ten most recent market sessions.
The US Markets
The US markets had a mixed performance session today but the Dow had a better session than the other two indexes. All the indexes opened low but Dow climbed continuously throughout the day finishing with a decent gain for the day. The Dow Industrial Average gained 172.13 points or 0.44%. The S&P 500 declined –3 points, or -0.00%, to close at 5,187.67. The Nasdaq Composite was down -29.80 points or -0.18%, to close at 16,302.76. Volume was down on the Nasdaq and the New York Exchange.
Six of the US markets major sectors gained today with Utilities leading with 0.77% gain. It is not often that Utilities lead the gainers but the fact that Utilities was the top gainer emphasizes that today was really a dull market session. Financials was up 0.24%; Industrials sector was up 0.20% and Energy was up a paltry 0.01%. Technology was down -0.06%; Healthcare was up -0.41% and Basic Materials which was often the top gainer during the last few weeks came up the worst performing sector on Wednesday.
Forest & Wood Products was the leading industry with 2.65% gain; Tires & Rubber Products gained 2.01%; Paper Products gained 1.93% while Computer Hardware gained 1.75% and Beverages – Brewers gained 1.40%.
Today’s Market Statistics: Today, the declined issues (Decliners) outnumbered the gaining issues (Advancers) on the NYSE. The ratio of Decliners to Advancers was 1.31-to-1.0 or in practical terms, approximately for every six Decliners there were five Advancers. In real numbers, 2,243 Decliners to 1,710 Advancers with 259 Unchanged. The total volume of shares traded for gaining stocks was 471,955,682 or 47.4%; the total volume for declined stocks was 510,486,361 or 51.3% and 12,629,521 or 1.3% for “Unchanged”.
There were 216 new 52-Week Highs and 55 new 52-Week Lows.
The total volume of stocks traded at the NYSE today was 995,071,564. Today’s volume of 995,071,564 is about four per cent higher than the average of the ten most recent market sessions.
On the NASDAQ, the Decliners prevailed over the Advancers today by a ratio of 1.23-to-1 or roughly for every six Decliners there were five Advancers. In real numbers, there were 2,325 Decliners to 1,889 Advancers with 326 Unchanged. The total volume of volume-gaining stocks was 1,882,794,059 or 40.3%; the total volume of declined-volume stocks was 2,730,610,487 or 58.4% and 63,677,678 or 1.4% for “Unchanged”.
There were 100 new 52-Week Highs and 83 new 52-Week Lows. NASDAQ continues to maintain an even balanced trend. The index appears to be waiting for an event to push it in a specific direction.
The total volume of stocks traded at the NASDAQ today was 4,677,082,224. Today’s volume of 4,677,082,224 is about ten percent lower than the volume yesterday and three percent lower than the average of the last ten market sessions.
10 –year Treasury Yield: The yield on the benchmark 10-year Treasury note edged up 1.5 basis points to 4.498 as investors appear to continue to weigh interest rate outlook. The yield had declined earlier in the week.
The market outlook remains Market In Early Rally Mode. We continue to recommend that investors wait for the rally to gain traction before jumping in.
Stocks In The News/Stocks To Watch
The Toronto Market
Shopify declined 18.52% or -$19.59 to close the session at $86.16 with a total of 6.1M shares changing hands today after announcing quarterly earnings results. At the US markets, shares of Shopify slid 19% to close at $62.73, in its largest daily drop on record. The stock was earlier down as much as 21%, its largest intraday percent decline ever.
The Royal Bank of Canada (TSX:RY) is on a roll. In fact, most of the Canadian six big banks appear to be ready to roll. The stock is knocking on $140. It hit on April 8th, turned back and is back knocking on that figure again. It will likely cross that figure soon. The bank seems to have fully integrated HSBC in to its operations. The last time RBC knocked on $140 was February 2023. The RY stock, now that the bank has integrated HSBC appears likely cross the $140 price soon and may continue on to cross $150.00, a price it last touched in January 2022.
Dollarama Inc. (TSX:DOL) has been a steady performer this year and will most likely continue as more immigrants pour in to the country and high interest rates remain economically crippling for the average Canadian.
The US market
GigaCloud Technology (GCT) is due to announce earnings Thursday morning. The stock has performed well this year. The stock sure has an interesting. Chart. We’ll keep an eye on it and see how it performs after earning result.
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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