TSX Today: What to Watch for in Stocks on Tuesday, May 10

As the weakness in commodities prices continues amid rising fears of a slowdown in the global economy, TSX stocks are likely to remain highly volatile.

| More on:
TSX Today

The ongoing stock market selloff intensified on May 9, as multiple factors, including high inflation, continued supply chain disruptions, and rising interest rates, reignited investors’ fears about a possible recession. As a result, the TSX Composite Index tanked by 634 points, or 3.1%, for the day to 20,000 — its lowest closing level in more than nine months. It was also the biggest single-day drop for the main Canadian market index since June 11, 2020. Apart from continued weakness in technology, industrials, and healthcare sectors, a sharp decline in commodity prices took TSX energy and mining shares lower.

Top TSX movers and active stock

Bausch Health (TSX:BHC)(NYSE:BHC) stock tanked by 19% on Monday to $16.78 per share, making it the worst TSX performer for the session. This crash came after Royal Bank of Canada cut its target price on BHC stock from $32 per share to $21 per share, hurting investors’ sentiments. Interestingly, Bausch Health’s wholly owned subsidiary, Bausch + Lomb, started trading as a separate publicly listed company last week with an initial public offering of 35 million common shares at a price of $18 per share.

Hut 8 Mining, Energy Fuels, Vermilion Energy, and Denison Mines were also among the top losers on the Toronto stock exchange, as they lost more than 12% each yesterday.

On the flip side, Loblaw Companies was the only TSX Composite component on May 9 that managed to inch up by more than 3% in the last session.

Based on their daily trade volume, energy stocks like Enbridge, Cenovus Energy, Suncor Energy, and Crescent Point Energy were the most active stocks on the Canadian exchange.

TSX today: Top earnings and economic events

After diving by nearly 7% yesterday, WTI crude oil prices were trading on a mixed note early Tuesday morning. Given that, investors may want to brace for more downside action on the TSX today. The U.S. energy information administration is expected to release its short-term energy outlook this afternoon, which could add to the volatility of oil prices and energy stocks.

As the Canadian corporate earnings season continues in full swing, companies including Northland Power, Kinross Gold, Tricon Residential, Intact Financial, Keyera, Ivanhoe Mines, Cronos Group, Nuvei, and Bausch Health Companies are expected to announce their latest quarterly results on May 10.

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 Nuvei Corporation and Tricon Capital. The Motley Fool recommends Enbridge, INTACT FINANCIAL CORPORATION, KEYERA CORP, and VERMILION ENERGY INC. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Energy Stocks

Value for money
Energy Stocks

Energize Your Portfolio With 2 Value Stocks

Two energy stocks are great value buys if you’re looking to energize your portfolio with high dividend or enormous capital…

Read more »

oil and gas pipeline
Energy Stocks

What Energy Stocks Are the Best to Buy and Hold for Years?

Not all energy stocks are worth owning, but these two energy stocks are some of the best to buy and…

Read more »

canadian energy stocks can be good investments
Energy Stocks

2 Energy Companies to Hold for Decades

Despite the relative volatility in the sector and the changes it’s expected to go through in the next few decades,…

Read more »

oil and natural gas
Energy Stocks

Suncor Energy (TSX:SU) Stock: Still a Great Value

Suncor Energy (TSX:SU)(NYSE:SU) is looking like an incredible value today.

Read more »

Tired or stressed businessman sitting on the walkway in panic digital stock market financial background
Energy Stocks

Market Correction: 3 Value Stocks to Buy

The TSX fell 10% from March 2022 highs this week, leading to a technical correction in the market, which leaves…

Read more »

oil and natural gas
Energy Stocks

2 Canadian Energy Stocks That Pay Massive Dividends

Canadian energy stocks are gushing cash today. Here's two that are paying massive dividends to faithful shareholders right now.

Read more »

energy industry
Energy Stocks

Time to Buy Vermilion Energy Stock?

Vermilion Energy is on the mend. Is VET stock still a buy after the big rally?

Read more »

Oil pumps against sunset
Energy Stocks

3 Top TSX Energy Dividend Stocks to Buy Right Now

Energy investors have been in a sweet spot lately with rallying stocks and steep dividend raises.

Read more »