Last week, the Canadian stock market displayed moderate optimism. The S&P/TSX Composite Index rose by 0.21%, ending at 25,444.28, supported by gains in key sectors like energy and materials. Year-to-date, the index has seen a robust increase of 24.69%, reflecting strong recovery trends in the Canadian market.
In the broader context, U.S. markets also advanced despite global uncertainties and mixed corporate earnings. The S&P 500 rose 1.68%, the Nasdaq Composite gained 1.73%, and the Dow Jones Industrial Average outpaced them with a 1.96% increase. However, international markets, as measured by the MSCI EAFE Index, were flat, showing subdued performance
Canada's market movements align with a mix of global optimism and sector-specific strength, hinting at resilience ahead of the holiday season.
Stock Push Ahead
Last week’s stock market performance was a mix of caution and optimism, reflecting a tug-of-war between global uncertainties and positive economic signals. Early in the week, geopolitical tensions spurred a rally in precious metals while putting downward pressure on Treasury yields. These factors contributed to a shaky start, especially for sectors sensitive to economic fluctuations.
However, by midweek, the Dow Jones Industrial Average surged ahead and maintained its lead, shrugging off disappointing earnings from a major retailer that tempered gains for the broader S&P 500. Additionally, mixed Q3 updates from a leading AI chipmaker slightly dampened enthusiasm in tech-heavy sectors.
Despite these hiccups, markets found strength in a surge of year-end optimism, fueled by expectations for a robust holiday shopping season. Spirits were further lifted by encouraging labor market news, with weekly jobless claims dropping to their lowest level in seven months—a promising sign for economic stability and consumer confidence.
This blend of resilience and cautious optimism underscores the market's complex dance with both challenges and opportunities as the year nears its end.
Source: YCharts.com, November 23, 2024. Weekly performance is measured from Monday, November 18, to Friday, November 22. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Small-Cap Focus
In recent weeks, small-cap stocks have been in the spotlight, with investors showing a clear preference for these nimble companies over larger, more established ones. Last week highlighted this trend as the Russell 2000, a widely followed index of small-cap stocks, surged by an impressive 4.50%. This brings its month-to-date performance through November 22 to nearly 9%—a robust rally that signals growing investor confidence in the smaller end of the market.
Small-cap stocks often thrive during periods of optimism about domestic economic growth, as they are more insulated from global headwinds and trade dynamics than larger, multinational firms. This recent momentum suggests a renewed focus on U.S.-centric growth stories, possibly driven by expectations for a strong holiday shopping season and encouraging labor market trends.
This Week: Key Economic Data
Tuesday:Consumer Confidence. New Home Sales. FOMC Minutes.
Wednesday:Gross Domestic Product (GDP). Durable Goods. Pending Home Sales. Personal Income and Outlays.
Thursday: US Markets Closed—Thanksgiving Holiday.
Source: Investors Business Daily - Econoday economic calendar; November 21, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Monday:Agilent Technologies, Inc. (A)
Tuesday:Analog Devices, Inc. (ADI), Dell Technologies Inc. (DELL), CrowdStrike (CRWD)
Source: Zacks, November 21, 2024.
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
“Keep some room in your heart for the unimaginable.”
– Mary Oliver
What comes once in a minute, twice in a moment, but never in a thousand years?
Last week’s riddle: I’m not alive, yet I grow. I need air, yet I have no lungs. I lack a mouth, yet water will calm me down. What am I?
Answer: Fire.
Emily hanging out with a Snowman at Qualicum Beach's Moonlight Madness.
Footnotes and Sources
- The Wall Street Journal, November 22, 2024
- Investing.com, November 22, 2024
- MarketWatch.com, November 19, 2024
- CNBC.com, November 20, 2024
- CNBC.com, November 21, 2024
- MarketWatch.com, November 21, 2024
- The Wall Street Journal, November 22, 2024
- IRS.gov, July 5, 2024
- Green Matters, July 24, 2024
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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Please consult your financial professional for additional information.