What to Watch for in the TSX Today

Here’s what to watch for today.

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TSX Today

The S&P/TSX Composite Index gained some 68.69 points to close at 21,284.84 level, up 0.3% on Monday. Gains were seen mostly in the base metals sub-index, which gained 2.5% for the day, ahead of the usual powerhouse, energy, which gained 1.9% in Monday’s trading session. However, Tuesday will be a new and definitely random day.

That said, given a generally good day for investors in European and Japanese stocks on Tuesday, the vibes could extend to the TSX today — especially as oil and commodity prices sustain a growth trend all through today’s trading session.

TSX today: Earnings

The third-quarter 2021 earnings reporting season is going full throttle. About 18 TSX-listed companies will report third-quarter financial results on Tuesday.

Double-digit revenue growth for First Service!

Real estate services provider First Service (TSX:FSV)(NASDAQ:FSV) reported a 14% growth in third-quarter revenue to US$849.4 million. Growth was supported by an 8% organic sales growth during the quarter. FSV stock investors could be drawn to the company’s 26% year-over-year increase in adjusted earnings per share to US$1.50.

“This performance was particularly impressive, given the ongoing labour and resource constraints which limited our ability to drive further growth,” CEO Scott Patterson is quoted saying. Investors could be happy to note that the company sees market demand indicators remaining strong, even in a challenging macroeconomic environment.

Most noteworthy, though, FSV’s earnings margins declined due to wage inflation and “increased supply chain costs…” Supply chain challenges are hitting businesses in every sector. However, COVID-19-related expenses are declining.

Quantum earnings growth at First Quantum Minerals  

First Quantum Minerals (TSX:FM) will report third-quarter earnings results after markets close on Tuesday. The $21.2 billion mining house explores and mines for copper, nickel, pyrite gold, silver, and zinc across four continents. It has benefited from rising commodity prices lately. Market analysts expect FM to report a 28% year-over-year growth in quarterly revenue to $1.8 billion. What’s more, normalized earnings per share should surge by 212% to about 28 cents per share and free cash flow could grow by 64% annually. This should be a beautiful earnings release for First Quantum Minerals stock investors to study after markets today.

Watch this inflation protection candidate

Canadian Real Estate Investment Trusts (REITs) are among the best investments to make for inflation-protected earnings and cash flows. Canadian and U.S. residential properties giant Morguard North American REIT (TSX:MRG.UN) will release its third-quarter results for the three months to September 30, 2021, on Tuesday. A conference call is scheduled for Thursday afternoon, so market players have ample time to study the results before asking management for any clarifications. Analysts project a flat top line with $62 million revenue and unchanged funds from operations (FFO) per unit at $0.28. Could supply chain issues touch this asset class, too?

Other notable earnings reports on Tuesday

Canfor (TSX:CFP) stock investors expect the forest products company’s third-quarter revenue to decline by 3% to $1.5 billion in Tuesday’s earnings release. Normalized earnings could decline by a staggering 30% year over year to $1.45 per share. Lumber demand is normalizing after a surge in construction during the pandemic. However, the company ships bulk goods, and a surge in shipping costs this year could hurt its business.

First National Financial (TSX:FN) will report after-market hours today.

Tuesday’s economic calendar

No major economic announcements are expected from Canada today. However, there are some key reports from the United States that could have an impact on the TSX today.

The S&P/Case-Shiller Home Prices report for August and U.S. New Home Sales for the past month are key data points that could impact general market sentiment.

However, the biggest data point for Canadian stock investors to watch out for today is the API Crude Oil Stock Change for October 22. Oil prices could react violently to oil demand and inventory data, and an energy stock-heavy TSX could benefit or suffer the consequences.

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.

Fool contributor Brian Paradza has no position in any stocks mentioned. The Motley Fool recommends FirstService Corporation, SV and MORGUARD NA RESIDENTIAL REIT UNITS.

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