TSX Today: What to Watch for in Stocks on Monday, May 2

Falling commodity prices and growing fears about an economic slowdown could take TSX stocks downward at the open today.

| More on:
TSX Today

The roller-coaster ride continued in the Canadian stock market on Friday, as shares turned negative again after staging a recovery in a previous couple of sessions. The TSX Composite Index fell by 1.7%, or 359 points, to settle at 20,762 on April 29. A sharp decline in real estate, technology, and energy sectors amid rising fears about an economic slowdown and a possible recession took the index downward.

With this, the main Canadian market gauge ended April with massive 5.2% losses, marking its worst monthly performance since March 2020. The TSX Composite benchmark, which was trading with over 3% gains at the end of March, is now down 2.2% on a year-to-date basis.

Top TSX movers and active stock

On Friday, NFI Group (TSX:NFI) tanked by 15% to $11.79 per share, making it the worst-performing stock on the index for the trading session. These massive losses in NFI stock came after the Canadian electric bus maker lowered its fiscal 2022 EBITDA guidance, citing the negative impact of supply chain disruptions and heightened inflationary pressures on its manufacturing process. NFI added that shortages of microprocessor chips are likely to hurt its vehicle deliveries in the second and third quarters. Year to date, NFI stock has seen 42% value erosion.

CAE, Eldorado Gold, and Baytex Energy were also among the worst-performing TSX stocks in the last session, as they fell by at least 7.6% each.

On the positive side, shares of some companies like Canopy Growth, Agnico Eagle Mines, and Altus Group rose by more than 4% each, making them the top performers for the day.

Based on their daily trade volume, energy stocks like Cenovus Energy, Enbridge, Baytex Energy, and Suncor Energy were the most active TSX stocks. About 16.6 million shares of Cenovus Energy changed hands on the exchange on April 29.

TSX today

Early Monday morning, most commodities — especially silver and copper — dived deep into the red. While U.S. stock futures were showcasing minor strength before the market opening bell, growing fears about new COVID-related restrictions in China worsening the global supply chain crisis could continue to take a toll on investors’ sentiments. As a result, I expect the TSX Composite benchmark to open lower today, with most commodity-linked stocks leading the losses.

Earnings events and economic data in Canada today

While no major domestic economic releases are due today, Canadian investors may want to keep a close eye on the latest manufacturing PMI data from the U.S. market this morning. On the corporate events front, several Canadian companies, including Nutrien, Gibson Energy, TMX Group, MEG Energy, Capital Power, Sandstorm Gold, Cargojet, and New Gold, are likely to release their latest quarterly earnings reports on May 2.

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 has positions in and recommends ALTUS GROUP and CARGOJET INC. The Motley Fool recommends Enbridge, NFI Group, Nutrien Ltd, and TMX GROUP INC. / GROUPE TMX INC. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Energy Stocks

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

energy industry
Energy Stocks

2 TSX Energy Stocks to Buy Hand Over Fist Now

These two rallying TSX energy stocks can continue delivering robust returns to investors in the long term.

Read more »

green energy
Energy Stocks

1 Magnificent TSX Dividend Stock Down 37% to Buy and Hold Forever

This dividend stock has fallen significantly from poor results, but zoom in and there are some major improvements happening.

Read more »

oil tank at night
Energy Stocks

3 Energy Stocks Already Worth Your While

Here's why blue-chip TSX energy stocks such as Enbridge should be part of your equity portfolio in 2024.

Read more »

Solar panels and windmills
Energy Stocks

1 Beaten-Down Stock That Could Be the Best Bet in the TSX

This renewable energy stock could be one of the best buys you make this year, as the company starts to…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Is Enbridge Stock a Buy, Sell, or Hold?

Here's why Enbridge (TSX:ENB) remains a top dividend stock long-term investors may want to consider, despite current risks.

Read more »

Gas pipelines
Energy Stocks

If You Had Invested $5,000 in Enbridge Stock in 2018, This Is How Much You Would Have Today

Enbridge's high dividend yield hasn't made up for its dismal total returns.

Read more »

Bad apple with good apples
Energy Stocks

Avoid at All Costs: This Stock Is Portfolio Poison

A mid-cap stock commits to return more to shareholders, but some investors remember the suspension of dividends a few years…

Read more »