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TSX Today: What to Expect From Canadian Stocks on September 9

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The Canadian stock market continued to drift down a bit for the second consecutive day on Wednesday. The S&P/TSX Composite Index settled at 20,742 — down 0.3% for the day. Meanwhile, key U.S. indexes like S&P500 and NASDAQ also ended the session in the negative territory. Despite a recovery in oil prices, weakening metals, and lingering concerns about slowing economic growth seemingly kept TSX investors worried yesterday.

On the monetary policy side, the Bank of Canada kept the interest rates unchanged, as it expected the economy to strengthen in the second half of 2021.

Top TSX movers and active stocks

On September 8, the shares of some big mining companies, like First Quantum Minerals (TSX:FM) and Teck Resources (TSX:TECK.B)(NYSE:TECK) fell sharply. While the First Quantum stock dived by nearly 7.5% on September 8, Teck Resources shares lost 4.1%. This selloff was mainly driven by the decline in copper prices for the second consecutive day.

It’s important to note that consistent weakness in the red metal prices could take a toll on these mining companies’ financial growth — especially profitability — in the coming quarters. Despite yesterday’s sharp losses, the shares of Teck Resources are still trading in the green territory on a year-to-date basis with 12% gains. In contrast, First Quantum extended its 2021 losses to 11.2% in the last session.

BCE, Suncor Energy, and Enbridge were among the most active TSX stocks on Wednesday that saw a jump in their daily trading volume.

Top TSX stocks to watch today

TSX stocks could open on a mixed to negative note on Thursday, September 9, as fears about slowing economic growth don’t seem to be ending soon amid rising Delta variant cases. TSX investors will also keep a close eye on the U.S. crude oil inventories this morning. Any unexpected change in the inventories data could lead to a big movement in oil prices and give direction to the Canadian energy stocks.

The shares of Shopify (TSX:SHOP)(NYSE:SHOP) will also remain in focus today after they shed 3.6% on Wednesday. Yesterday’s drop in the Canadian tech company stock price came after a Business Insider report claimed that the American tech giant Amazon is developing a new point-of-sale system. With this, Amazon could potentially steal the customers away from the e-commerce platform companies, including Shopify. While Shopify has posted outstanding sales and profitability growth in recent years, the entry of a tech giant like Amazon in its territory could be worrisome.

On the corporate events side, the Canadian retail chain Dollarama (TSX:DOL) will release its second-quarter results before the market opens today. Bay Street analysts expect the company’s July quarter revenue to be around $1.04 billion — up 2.8% year over year. Its adjusted earnings are expected to be 7.4% higher from a year ago at around $0.49 per share. DOL stock has traded on a positive note in 2021 so far, but it’s still underperforming the broader market with only 10.8% gains.

The food and grocery retailer North West Company and the business software provider Enghouse Systems will also announce their latest quarterly results on Thursday.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool owns shares of and recommends Amazon, Enbridge, Enghouse Systems Ltd., Shopify, and Teck Resources. The Motley Fool recommends THE NORTH WEST COMPANY INC and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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