The Canadian Vanguard Stock Market Report – October 4-6, 2024 Weekend
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Your Data-Driven Stock Market Analysis And Report – The investor’s readiness guide for the week of October 7 market sessions.
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The Toronto Market, Friday
The TSX composite index advanced 194.33 points or 0.81% to close the market session at 24,162.83. The job report Friday propelled the indexes up across the North American stock markets.
The Market Spread: The market was broad-based positive on Friday. Technology was up an impressive 2.8%. Energy was up 1.10%; Financials was up 0.77% while Basic Materials was up 0.72%. Discretionary Consumer Goods & Services was up 0.55% and both Industrials and Healthcare sectors also rose during the session. The other sectors declined.
For the week; Friday was positive but it was just an average week for most sectors. Energy, up 5.86%, was the top, stand out gainer for the week. Technology gained 2.14%; Healthcare gained 0.24% and Financials gained 0.15%. Telecommunications Services declined -2.73% and Utilities declined -2.12%. Durable Consumer goods & Services declined -1.60% and Industrials declined -0.95%.
The Industry Groups: Fishing & Farming, up 5.93%, was the top industry performer on Friday. Computer Hardware was up 4.46%; Electrical Components & Equipment was up 4.42%; Aluminum was up 4.35% and IT Services & Consulting was up 4.13%.
Today’s Statistics: Today, the gaining issues (Advancers) outnumbered the declined issues (Decliners) by a ratio of 1.84-to-1.0 or simply there were nine Advancers for every five Decliners – pretty bullish indicator. In real numbers, there were to 1,189 Advancers to 645 Decliners while 160 stocks remained Unchanged.
The total volume of shares traded at the TSX on Friday was 353,815,298 or 7.2% higher than the volume of 330,094,760 shares traded on Thursday.
Today, there were 212 new 52-Week Highs and 16 new 52-Week Lows – lopsidedly bullish. Yesterday, there were 75 new 52-Week Highs and 20 new 52-Week Lows.
Market Roundup: The Toronto market, on Friday staged a definitive upward move. The session was quite different from earlier in the week when the index made minor moves up and down around the 24,000 level earlier in the week. It was a big reversal accompanied by volume increase but we don’t make decisions on market trend based on just one session’s data.
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The US Markets
All three major indexes advanced solidly on Friday. The Dow Jones Industrial Average gained 341.16 points or 0.81%, to close the market session at 42,352.75. The S&P 500 index was up 51.13 points, or 0.90%, to close at 5,751.07. The Nasdaq Composite advanced 219.37 points or 1.22%, to close the session at 18,137.85. It was a day of robust gains by all the indexes.
The Market Spread: The indexes gained on Friday in a broad-based positive market session. Nine of the eleven major sectors in the US markets gained. Discretionary Consumer Goods & Services was up 1.65%. Financials sector was closely behind with 1.52% gain. Technology was up 1.14%. Energy, Industrials and Basic Materials were up 0.89%, 0.82% and 0.46% respectively. Telecommunications Services was down marginally at -0.05%.
For the week: Energy, up 5.75%, was the lead gaining sector. Technology, up 0.87%, was next. Clearly, Energy dominated the week fueled by uncertainties in the Middle East. Financials and Utilities were each up 0.42%. The rest of the sectors declined with Basic Materials down the most at -1.70%.
The Industry Groups: Retail – Catalog & Internet Order vaulted up 10.92%; Investment Trust was not too far behind with 8.93% gain. Advertising / Marketing was up 7.64%. Coal was up 7.31% and Textiles and Leather Goods was up 6.69%.
Today’s Market Statistics: The gaining issues (Advancers) outnumbered the declined issues (Decliners) on the NYSE. The ratio of Advancers to Decliners was 1.72-to-1.0 or for every nine Advancers there were five Decliners. In actual numbers, there were 2,530 Advancers to 1,471 Decliners with 328 Unchanged.
Friday, there were 295 new 52-Week Highs and 30 new 52-Week Lows. On Thursday, there were 180 new 52-Week Highs and 51 new 52-Week Lows.
The total volume of stocks traded at the NYSE on Friday was 3,479M, 3.3% lower, compared to Thursday’s market session.
On the NASDAQ, the Advancers outnumbered the Decliners by a ratio of 2.20–to-1 or for every eleven Advancers there were ten Decliners. In actual numbers, 2,885 Advancers to 1,312 Decliners with 316 Unchanged.
On Friday, there were 164 new 52-Week Highs and 97 new 52-Week Lows. Thursday, there were 87 new 52-Week Highs and 124 new 52-Week Lows – quite a reversal in one day.
The total volume of stocks traded at the NASDAQ today was 5,343,614,452, a 4% decrease compared to the total volume of 5,558,597,475 shares traded on Thursday.
Oil Price: U.S. crude oil on Friday posted its biggest price increase, surging 9.1% to $74.38 a barrel this past week, the biggest weekly gain since March 2023. Traders feared Israel could strike Iran’s crude facilities.
10 –year Treasury Yield: The 10-year Treasury yield was up 12 basis points to around 3.981% as at market close on Friday, up from Thursday’s close of 3.848%. The five-year yield closed at 3.813%, up from 3.631%. The two-year yield, vaulted 37 basis points, the most in two years, to 3.93%. For the week, the 10-year Treasury yield spiked 23 basis points to 3.98%, the biggest weekly gain in about a year.
Market Roundup Report: We have, for the week, been mentioning that the market needs a trigger to push it in a specific direction as opposed to the small moves up and down. On Friday, the markets finally got the trigger – the job report on Friday. The job market is in good shape but inflation is also going down – really the best of both worlds scenario. The job report created a “rising tide that lifts all boats” for stocks. The major indexes were all up today, each advancing three digit points during the session. The current rally got energized, actually more like a booster – we shall, of course have to wait to see how it plays out in the short term.
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Stocks In The News / Stocks To Watch
The Toronto Market
Technology dominated the Toronto market on Friday. Shopify Inc (TSX:SHOP) and Celestica Inc. (TSX:CLS) were big performers. Celestica Inc. has been reinvented and appears primed for the future in the IT manufacturing sector. Celestica stock was up 4.73% or $3.30 to close at $73.09 with 757.8k shares were traded.
Shopify Inc. (TSX:SHOP) gained 5.60% or $5.93 on Friday closing at $111.91 with 3.3M shares traded. On a weekly chart, Shopify may be tracing the right side of a cup formed over a seven month period. An aggressive investor may buy Shopify now but the proper buy point is around $123.30.
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The US Markets
The Energy sector has been on a roll recently, both the fossil and clean energy companies. For example, Viper Energy (VNOM) was up 3.53% or $1.71 to close at $50.22 with 1.6M shares changing hands.
Tesla Inc. (TSLA) has scheduled its robotaxi event for later this week. Tesla stock has lately been erratic. The robotaxi event may cause the Tesla stock to vault up or decline heavily, depending on what is displayed at the event and the market’s perception of the event. One should be cautious buying Tesla stock between now and then. TSLA stock was up 3.91% or $9.42 to close at $250.08 with 86.7M shares traded.
For a bit more stability in the portfolio and without sacrificing good returns, one could consider Meta Platforms (META). On Friday, META stock was up 2.26% or $13.17 closing the session at $595.94 with 14.2M shares traded. On January 2 this year, META stock closed at $344.47 with 15.45M shares traded.
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Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
Beginner Investor’s Blended Growth Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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.
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