The Canadian Vanguard Stock Market Report – Monday, May 12, 2025
US – China Trade Deal fires up the indexes as markets regain upbeat tempo, Nasdaq ended the session high up in the Clouds
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The Toronto Market
The TSX composite index was up 174.44 points or 0.69%, to close the session at 25,532.18. The TSX is up four consecutive sessions.
Gold was down today at the regular market session but rose in the aftermarket hours. The image shown was captured after hours.
The Market Breadth
Seven of the ten major sectors gained. Technology advanced 7.15% as Shopify Inc. and Celestica Inc. stocks made significant gains. Discretionary Consumer Goods & Services, a good indication of Retail’s stocks performance, gained 1.67%; Industrials was up 1.38%; Financials was up 1.05%; Energy was up 0.64%, and Telecommunications Services was up 0.15%. Durable Consumer Goods & Services was down -1.20%; Utilities was down -1.43%; and Basic Materials, down -4.16%, was the laggard today.
Industry Groups: The top five industry groups in the TSX today were: IT Services & Consulting, up 12.03%; Retail – Apparel & Accessories, up 9.12%; Electrical Components & Equipment, up 7.53%; Chemicals – Commodity, up 5.19%; and Leisure Products, up 5.13%.
Today’s Statistics
Today, the issues that gained (Advancers) outnumbered those that declined (Decliners). There were roughly two Advancers for every Decliner, or a more exact ratio of 2.35-to-1.0. In real numbers, there were 1,388 Advancers to 589 Decliners while 113 stocks remained Unchanged.
Today, there were 91 new 52-Week Highs and 15 new 52-Week Lows. There were 69 new 52-Week Highs and 7 new 52-Week Lows on Friday.
The total volume of shares traded at the TSX today was 549,357,057, or about 37% more than the volume of 400,617,366 shares traded on Friday.
Market Roundup Report
The TSX has done better than the US indexes over the last several weeks. We do not recall when TSX last closed 4% up, as NASDAQ did today. TSX delivers in steady streams suited to calmer nerves. Technology and Retail stocks dominated the market today. Shopify Inc. (TSX:SHOP) rose from the dead to vault up 14.08%. How long will it last? Simply enjoy it while it lasts. We shall keep our readers updated on Shopify stock. AI is not going away, and data centers will continue to be built, so Celestica Inc. (TSX:CLS) is worth keeping an eye on. CLS stock was up 8.20% today with good volume.
Gold stocks were down today. We warned our readers over the weekend that Gold and gold miner stocks were either extended or close to being extended. Given that situation and that futures were up robustly Sunday evening, it was easy to predict that today, Monday, was going to be a poor session for gold-related assets. There are alternative mining stocks – Ivanhoe Mines (TSX:IVN) was up 7.92%. Teck Resources Ltd (TSX:TECK.B) and Precision Drilling (TSX:PD) were each up 5.86%. Bombardier Inc. (BBD.B) was up 4%. It is time to be fully invested and read this column every morning before your first trade of the day. Expect gold miner stocks to underperform in the short term. Give the stocks time to digest the relatively big gains of the past few weeks.
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The US Markets
The Dow Jones Average index vaulted 1,160.72 points or 2.81% to close at 42,410.10. The S&P 500 index advanced 184.28 points or 3.26% to close at 5,844.19. The Nasdaq Composite jumped 779.43 points or 4.35%, to close at 18,708.34. In small caps, Russell 2000 jumped 69.12 points, or 3.42%, to close at 2092.20.
The Market Breadth
Seven of the major sectors gained in today’s market session. Discretionary Consumer Goods & Services, was up 4.91%, Technology was up 4.40%, Industrials was up 2.65%, Healthcare was up 2.43%, Financials was up 2.14%, Energy was up 1.78%, and Basic Materials gained 0.92%. Durable Consumer Goods & Services was down -0.19%; Utilities declined -0.54%; and Telecommunications Services declined -1.36%.
Industry Groups: The top five industry groups in the TSX today were: Retail – Departmental Stores, up 8.92%; Appliances, Tools & Housewares, up 7.97%; Rails & Roads – Freights, up 7.89%; Retail – Catalog & Internet Order, up 7.87%; and Aluminum, up 7.87%.
Today’s Market Statistics
At the NYSE, the issues that gained (Advancers) outnumbered the issues that declined (Decliners). There were roughly three Advancers for every Decliner, or an exact ratio of 2.83-to-1.0. In actual numbers, there were 3,114 Advancers to 1,102 Decliners with 239 Unchanged.
Today, there were 165 new 52-Week Highs and 43 new 52-Week Lows. There were 84 new 52-Week Highs and 37 new 52-Week Lows on Friday.
The total volume of stocks traded today at the NYSE was 6,079,732,965, or 29% more than the total volume of 4,719,648,559 shares traded on Friday.
On the NASDAQ, the Advancers outnumbered the Decliners. There were roughly three Advancers for every Decliner, or an exact ratio of 2.83-to-1.0. In actual numbers, there were 3,332 Advancers to 1,178 Decliners with 200 Unchanged.
Today, there were 158 new 52-Week Highs and 68 new 52-Week Lows. There were 85 new 52-Week Highs and 103 new 52-Week Lows on Friday.
The total volume of shares traded at the NASDAQ today was 11,061,043,755, or 21% more than the total volume of 9,108,766,795 shares traded on Friday.
Market Roundup Report
The indexes regained the moving averages lines, which had proved elusive the last couple of months and while the Trump tariff disruptions persisted. Investors can breathe easy for now. The US – China trade deal was good for both sides. We would not say that the US gave in to China, but both sides got good tariff discounts, so we can at least expect the deal to last at least three months and most likely beyond. Investors can now confidently move back into the markets. It will be a smart move, though to always be on the ready to bail out of positions as long as Trump remains the president. Some drama will always crop up. It is time to be fully invested, but while keeping an eye out for unexpected new Trump’s tariff missiles.
Oil Price: U.S. crude oil futures rose on the hope of a better economy after US-China trade deal. Oil was at $61.96 a barrel in the late afternoon today. US Oil price was up at $61.84 a barrel as of the time (11:30pm ET, Monday) of this post update.
10 –year Treasury Yield: Treasury yields were generally higher. The 10-year Treasury yield rose 8 basis points to 4.45% today. US Treasury 10-year Treasury yield was at 4.451% as of the time (11:30pm ET, Monday).
After-hours action: Futures are down slightly Monday evening. Dow Futures was down -92 points or -0.22% vs. fair value. S&P 500 futures was down -0.34%, and Nasdaq 100 futures was 0.43% as of the time (11:30pm ET, Monday) of this post update.
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Regular Market Day Features
The Canadian Vanguard Beginner’s Watchlist
The Canadian big six banks are finally waking up, but are still relatively lagging.
The Blended Growth Stock Watchlist
Gold miners are taking a break, while Technology stocks should prevail at least in the short term.
EV Manufacturers and Resource Stocks
EV manufacturers’ stocks are on the roll. Tesla is up today, Li Autos rather than BYD has been the more consistent Chinese EV company in the US markets.
NOTICE TO READERS
