TSX Today: What to Watch for in Stocks on Friday, February 4

Despite strengthening crude oil prices, the main TSX index could trade on a weak note due to the ongoing tech sector meltdown.

| More on:
TSX Today

Stocks ended their four-session-long bull run on Thursday, as the S&P/TSX Composite Index fell sharply by 1.3%, or 268 points, to close at 21,094. With this, the index trimmed its week-to-date gains to 1.7% and entered negative territory again on a year-to-date basis. All key sectors on the benchmark showcased weakness yesterday, while technology, healthcare, industrials, and consumer cyclicals led the selloff.

Why TSX stocks fell

Despite slightly better-than-expected weekly U.S. jobless claims and manufacturing data, much worse-than-expected non-farm employment data for January continued to hurt investors’ sentiments. Also, disappointing tech earnings from the U.S. market triggered a selling spree in tech stocks across North America.

Top TSX movers and active stocks

Telus International, Shopify, Aurora Cannabis, Cronos Group, and Canopy Growth were the worst-performing stocks on the main Canadian market index, as they dived by more than 6% each in the last session.

No TSX Composite component managed to end the day with 2% or more gains, as the broader market selloff kept stocks across sectors under pressure.

Shares like Enbridge, Suncor Energy, Cenovus Energy, and Bank of Montreal were the most active stocks on the exchange.

Latest Canadian earnings

The Montréal-based tech company Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) reported its Q3 results yesterday. The company’s total revenue for the quarter stood at US$152.7 million — more than double from a year ago. For the December quarter, Lightspeed reported an adjusted net loss of US$0.07 per share, which was 20% better than analysts’ expectation of US$0.09-per-share loss. Nonetheless, these financial results failed to boost investors’ confidence, as LSPD stock fell by 4% on Thursday.

BCE (TSX:BCE)(NYSE:BCE) also reported its slightly better-than-expected Q4 results yesterday. While the communications giant’s total revenue of $6.2 billion rose by nearly 2% year over year, its adjusted earnings for the quarter fell by 6.2% to $0.76 per share. On the positive side, its December quarter earnings numbers were slightly better than analysts’ expectations, which helped its stock rise by 1% on February 3, despite the broader market selloff. Year to date, BCE stock is now trading with 2.5% gains.

TSX today

Early Friday morning, crude oil prices surged to their multi-year highs with well more than 1% intraday gains while most metals were staging a minor recovery. Given that, the TSX could open on a slightly positive note today. However, the ongoing tech sector selloff may continue to pressurize it later during the session.

Canadian investors could eye on the latest domestic employment change and purchasing managers’ index releases this morning. Also, the U.S. non-farm payrolls and unemployment rate data for January will remain in focus.

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 owns and recommends Shopify. The Motley Fool recommends Enbridge, Lightspeed Commerce, and TELUS International (Cda) Inc. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

stock analysis
Tech Stocks

Investing in AI: 1 Cheap Tech Stock Poised for Growth

Docebo is a little-known Canadian tech firm that's unlocking the power of next-generation AI technologies.

Read more »

Businessman holding AI cloud
Tech Stocks

5 Tech Stocks You Can Buy and Hold for the Next Decade

Don't make the mistake of thinking all tech stocks are alike. These five have a strong future both behind and…

Read more »

funds, money, nest egg
Tech Stocks

TFSA Investors: 2 TSX Stocks for a Legit Shot at $1 Million in 20 Years

Undervalued TSX tech stocks such as Neighbourly Pharmacy can help investors to turn a $100,000 investment into $1 million in…

Read more »

Dividend Stocks

TFSA: 3 Value Stocks to Buy in April

The March dip is a synopsis of the mild recession banks anticipate as high interest rates trickles down. It is…

Read more »

Growing plant shoots on coins
Tech Stocks

Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

If you've got $5,000 to invest, buying growth stocks like Lightspeed Commerce and Microsoft is a smart decision.

Read more »

edit Colleagues chat over ketchup chips
Tech Stocks

2 Easy TSX Stocks for Beginners in April 2023

You don’t need to think twice about loading up on these two Canadian stocks in April.

Read more »

calculate and analyze stock
Tech Stocks

Growth Stocks: A Once-in-a-Decade Opportunity to Get Rich

Growth stocks are generally cheap now. So, this year is a good opportunity to shop for growth stocks, perhaps through…

Read more »

grow money, wealth build
Tech Stocks

$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

Growth stocks such as Dollarama and Chewy are well poised to deliver outsized gains to long-term investors.

Read more »