TSX Today: What to Watch for in Stocks on Tuesday, May 24

Top bank earnings could keep the banking sector volatile on the TSX this week.

| More on:
TSX Today

Canadian equities remained choppy in the last trading session before a long weekend. The S&P/TSX Composite Index rose slightly by 16 points Friday, helping the benchmark end the week with 0.5% gains at 20,198 after it fell sharply by 2.6% in the previous week.

Despite steep losses in healthcare and consumer sectors, strengthening commodity prices, including crude oil and metals, kept optimism alive on the commodity-heavy TSX last week. This is one of the key reasons why the Canadian market gauge outperformed its U.S. peers by a wide margin. For example, the American S&P 500 index plunged by nearly 3% in the week ended on May 20.

Top TSX movers and active stocks

Shares of Shopify (TSX:SHOP)(NYSE:SHOP) fell by more than 7% on Friday to $466.30 per share, making it the worst-performing TSX Composite component for the session. While there was no obvious company-specific news to blame for its weakness, concerns about high inflation and expectations of more aggressive rate hikes in the near term have continued to keep tech stocks extremely volatile lately. That explains why Shopify stock has fallen in six out of the last seven weeks.

Bombardier, Canopy Growth, and WSP Global were also among the worst-performing TSX stocks in the last session, as they slipped by more than 5% each.

On the positive side, shares of companies like Kinaxis, Dollarama, Open Text, and GFL Environmental were among the top-gaining Canadian stocks, as they rose by at least 3% each.

Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD) stock rose by nearly 7% last week to $29.51 per share after posting 9% gains in the previous week. The Canadian software company released its fourth-quarter results on May 19. Investors’ rising expectations from its latest quarterly results and its higher-than-expected Q4 sales could be responsible for LSPD’s recent comeback on Bay Street. Interestingly, Lightspeed registered a 78% year-over-year increase in its total revenue in the March quarter, despite a challenging macro environment.

Based on their daily trade volume, Great-West Lifeco, Crescent Point Energy, Suncor Energy, and Barrick Gold were the most active stocks on the exchange on Friday.

TSX today

While metals prices were continuing to strengthen early Tuesday morning, crude oil prices were trading on a mixed note. Given these slightly positive signals from the commodity market, I expect the TSX Composite benchmark to open slightly higher today. While no major domestic economic data is due today, Canadian investors could keep an eye on the latest new home sales release from the U.S. market this morning.

The banking sector in Canada is also likely to witness high volatility this week, as the biggest five banks are set to release their latest quarterly results in the next couple of days.

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 Shopify. The Motley Fool recommends KINAXIS INC, Lightspeed Commerce, OPEN TEXT CORP, and WSP GLOBAL INC. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

A colourful firework display
Tech Stocks

Nuvei Stock is on Fire This Year: Is it a Good Buy Today?

Nuvei stock (TSX:NVEI) is down about 85% since pandemic highs, falling 39% after earnings. So, what now?

Read more »

A bull outlined against a field
Tech Stocks

Prediction: These 2 Stocks Could Skyrocket in the Next Bull Market

Are you looking for stocks that could skyrocket in the next bull market? Here are two top picks!

Read more »

Volatile market, stock volatility
Tech Stocks

2 Tech Stocks On Sale in This Latest Tech Sell-off

Constellation Software (TSX:CSU) and Lightspeed Commerce (TSX:LSPD) went on sale in the latest tech sell-off.

Read more »

Dividend Stocks

3 No-Brainer Stocks to Buy With $200 Right Now

Are you looking to invest $200 in stocks right now? Here are three no-brainer stocks to invest your money in…

Read more »

analyze data
Tech Stocks

3 Top TSX Stocks to Buy in October 2023

Here's why undervalued TSX stocks such as goeasy and Dollarama should be on your shopping list in October 2023.

Read more »

Dollar symbol and Canadian flag on keyboard
Tech Stocks

Stock Market SellOff: 2 Canadian Growth Stocks to Buy Hand Over Fist

Here are two of the best Canadian growth stocks you can buy at a big bargain amid the market selloff.

Read more »

Businessman holding AI cloud
Tech Stocks

Investing in AI Stocks: 3 Companies Poised to Dominate the AI-Powered Economy!

NVIDIA, Alphabet, and Microsoft are 3 AI stocks offering investors exposure to different aspects of the AI opportunity.

Read more »

man sitting in front of 3 screens programming
Tech Stocks

2 Growth Stocks to Hold for the Next 10 Years

Are you interested in growth stocks? Here are two picks to hold for the next 10 years!

Read more »