The Canadian stock market recovery gained steam on Wednesday, as a lower-than-expected increase in U.S. inflation numbers in July boosted investors’ confidence. The S&P/TSX Composite Index rose by 308 points, or 1.6%, to 19,886, marking its best single-day performance in three weeks. Easing inflation and largely better-than-expected earnings led to strong renewed buying in shares of companies from healthcare, technology, consumer cyclicals, financials, and real estate sectors. In addition, bullish movement in commodity prices across the board also drove TSX commodity-linked stocks higher.
Top TSX movers and active stocks
Shares of Boyd Group Services (TSX:BYD) popped 20.6% on August 10 to $192.50 per share after the release of its second-quarter results. During the quarter, the Winnipeg-based firm reported a 37.8% year-over-year jump in its total revenue to US$612.8 million, with strong same-store sales growth in both the U.S. and Canada. Strong demand for its services also helped Boyd Group post a strong 18.9% jump in its adjusted earnings from a year ago to US$0.63 per share — more than double analysts’ estimates of US$0.30 per share. The latest rally in BYD stock trimmed its year-to-date losses to just 3.6%.
Converge Technology (TSX:CTS) stock also jumped by more than 20% yesterday to $7.10 per share — a day after the tech company announced its strong quarterly results. In the second quarter, Converge’s sales increased by 72.8% from a year ago to $596.7 million amid robust demand for digital transformation and hybrid tech solutions. Its adjusted earnings in the last quarter stood at $0.14 per share, beating Street’s estimate of $0.10 per share. Year to date, CTS stock now trades with 34.7% losses.
Bombardier, Canopy Growth, and Hudbay Minerals were also among the top-performing TSX stocks in the last session, as they rose by more than 10% each.
On the flip side, shares of Centerra Gold and CAE were the worst-performing TSX Composite components, as they dived by at least 17% each after missing their latest quarterly earnings estimates.
Based on their daily trade volume, Barrick Gold, Suncor Energy, Manulife Financial, and Enbridge were the most active stocks on the exchange.
TSX today
Early Thursday morning, crude oil and copper prices were trading on a bullish note, which could take mining and energy stocks on the TSX higher at the open today. Investors may want to keep a close eye on the jobless claims and producer price data from the U.S. market this morning.
Several large Canadian companies, including Brookfield Asset Management, CI Financial, Canada Goose, Canadian Tire, Northland Power, Onex, and NorthWest Healthcare Properties REIT, are expected to release their latest quarterly results on August 11, which could keep their stocks and the broader market volatile.
