TSX Today: Why Stocks Could Slide on Monday, December 20

Rising fears about Omicron variant and falling commodity prices could take TSX stocks lower today.

The stocks market continued to trade on a mixed note Friday, as the TSX Composite Index ended the session without any notable change from its previous close. Despite an intraday rally in precious metals prices, the main Canadian index couldn’t post gains, as investors continued to digest the U.S. Fed’s latest statement and worse-than-expected jobless claims and manufacturing data.

While the shares of companies from the healthcare, utilities, and technology sectors rose, the energy and industrials sectors showcased weakness.

TSX Today

Top TSX movers and active stocks

Surprisingly, Nuvei (TSX: NVEI)(NASDAQ: NVEI) stock saw a sharp recovery of about 11% in the final hours of trading on Friday, making it the top gainer stock on the TSX Composite for the day. While there was no major company-specific news to fuel this rally, a tech sector-wide recovery seemingly helped this badly beaten-down stock recover. Earlier this month, on December 8, NVEI stock plunged more than 40% after a New York-based short seller severely criticized the company in its latest report.

Cronos Group, Village Farms International, and Westport Fuel Systems were among other top performers on the TSX, as they rose by at least 7% each.

In contrast, the Canadian tech stock Enghouse Systems, along with energy stocks like Enerplus, Crescent Point Energy, and Parex Resources, were the worst-performing stocks on the main Canadian index.

Based on their daily trade volume, TC Energy, Suncor Energy, Cenovus Energy, and Kinross Gold were the most active stocks on the exchange. More than 17 million shares of TC Energy changed hands in the last session.

TSX today

Concerns about rising Omicron variant cases across the world are back to haunt investors. These fears are leading to a big selloff in commodity prices early this morning — especially in crude oil and base metals. That’s one of the key reasons I expect TSX stocks to open lower on Monday, December 20 from its previous close.

In addition, other factors such as inflationary pressures and supply chain disruptions could add to investors’ pessimism in the near term.

The Motley Fool owns and recommends Enghouse Systems Ltd., Nuvei Corporation, and Village Farms International, Inc. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

The letters AI glowing on a circuit board processor.
Tech Stocks

Why Celestica Stock Is Swinging This Week, and What Investors Should Watch Next

Celestica (TSX:CLS) had an extremely volatile week and there might be more ahead.

Read more »

businessmen shake hands to close a deal
Tech Stocks

I’m Betting on Constellation Software’s Epic Acquisition Model After 17% Revenue Growth

Constellation Software stock is back in full growth mode. Here is why its epic acquisition engine makes CSU a top…

Read more »

A person uses and AI chat bot
Tech Stocks

AI Spending Faces a Reality Check: This Canadian Tech Stock Gets Paid to Cut Costs

CGI offers a practical AI investment case built around clients getting useful work done for less.

Read more »

chip glows with a blue AI
Tech Stocks

Down 28% in Less Than 24 Hours: What’s Going on With Intel Stock on Friday?

Intel's server business is booming, but the company can't build enough to satisfy demand, and a weaker PC market is…

Read more »

chip glows with a blue AI
Tech Stocks

Celestica Stock Dives 12% in a Day on AI Chip Jitters Then Soars 8%: Buy the Dip or Stay Away?

Celestica (TSX:CLS) stock is getting too cheap as it continues smashing expectations.

Read more »

young adult uses credit card to shop online
Tech Stocks

That $115.6 Billion Quarter is Why I’m Still Holding Shopify

Holding Shopify after its US$115.6 billion quarter? Here’s why growing merchant sales, payments adoption and cash flow support staying invested.

Read more »

A worker gives a business presentation.
Tech Stocks

How Inflation Quietly Raises Your Retirement Target

Get insights into inflation and its effects on your savings. Discover what influences inflation and how to manage it.

Read more »

Data center woman holding laptop
Dividend Stocks

3 Canadian Data Centre Stocks I’d Buy Now, Ranked

Canadian data centre stocks offer different ways to invest in AI infrastructure. Here’s how Celestica, Hammond Power and Brookfield compare.

Read more »