TSX Today: What to Watch for in Stocks on Monday, January 10

TSX stocks are likely to start the new week on a slightly bullish note today, as recovering metals prices point to a higher opening.

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TSX Today

Canadian equities continued to trade on a mixed note for the second consecutive session on Friday. The TSX Composite Index ended the day at 21,084 with minor 12-point, or 0.1%, gains from its previous closing, despite a much better-than-expected domestic employment change data for December. Strengthening commodity prices helped energy and mining stocks rise. In contrast, other major sectors, like technology, real estate, and consumer non-cyclicals, fell sharply.

Top TSX movers and active stocks

Energy Fuels, Transcontinental, Bombardier, and Nexgen Energy were the four top-performing stocks on the TSX Composite benchmark, as they rose by at least 4% each on January 7.

Interestingly, the shares of Air Canada (TSX:AC) also rose by 3.9% in the last session to $23.05 per share. This rally took its year-to-date gains to 9.1% without any notable company-specific news. Investors’ expectations of travel demand improvements in 2022 could be driving AC stock higher lately. However, investors might want to remain cautious before buying Air Canada stock right now, as the recent surge in Omicron infections could delay its financial recovery further, as I explained in one of my recent articles.

On the negative side, Canada Goose Holdings, Lithium Americas, Hut 8 Mining, and Primaris REIT were the four worst performers on the main Canadian market index. While Canada Goose and Lithium Americas dived by at least 5% each, Hut 8 Mining and Primaris REIT shed around 4% each.

Nearly 11 million shares of TD Bank changed hands on the exchange on Friday, making it the most active Canadian stock for the day. Suncor Energy, Crescent Point Energy, and Bombardier also traded with high volumes.

TSX today

TSX stocks are likely to start this week on a slightly positive note, as recovering metals prices point to a higher opening on Monday. While no major economic releases are due today, Canadian stocks — especially the technology sector — may remain volatile ahead of the U.S. Fed chair Jerome Powell’s testimony tomorrow.

On the corporate events side, the Canadian cannabis giant Tilray is expected to report its November quarter results this morning. Analysts expect the company to post an adjusted net loss of US$0.09 per share for the quarter.

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.

The Motley Fool recommends TRANSCONTINENTAL INC A. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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