TSX Today: What to Watch for in Stocks on Monday, August 22

Falling commodity prices — especially metals — point to a lower open for the main TSX benchmark today.

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TSX Today

Canadian stocks turned negative on Friday, as investors reacted to worse-than-expected domestic retail sales data. The S&P/TSX Composite Index fell by 154 points, or 0.8%, in the session to settle at 20,111. The stock market selloff was primarily led by healthcare, technology, metals and mining, real estate, and consumer cyclicals sectors. In addition, a continued bearish movement in oil prices also drove shares of Canadian energy companies downward.

Top TSX movers and active stocks

Ballard Power Systems, Cameco, Aurora Cannabis, and New Gold were among the worst-performing TSX Composite components, as they fell by more than 7% each on August 19.

Shares of Dye & Durham (TSX:DND) also dived by 6.8% in the last session to $16.29 per share, making it among the worst performers. This selloff in the shares of Toronto-based tech company came after the Australian firm Link Administration’s shareholders voted in favour of the proposed acquisition of Link Group by Dye & Durham for a base consideration of AU$4.81 per share. While the deal is expected to expand Dye & Durham’s international market presence, the ongoing tech sector-wide selloff could be the main reason for its recent declines. Year to date, DND stock now trades with a massive 63.7% loss.

On the positive side, Birchcliff Energy, Brookfield Infrastructure Partners, and Kinross Gold were among the top TSX gainers Friday, as they rose by at least 2% each.

Based on their daily trade volume, Canadian Natural Resources, Barrick Gold, Suncor Energy, and Fortis were the most active stocks on the exchange.

TSX today

Early Monday morning, WTI crude oil futures prices were trading on a positive note. In contrast, metals — including gold, silver, and copper — continued to slide. These mixed indications from the commodity market point to a lower open for the main TSX index today. While no major economic releases are due today, investors are likely to remain cautious before the U.S. second-quarter GDP data, which is scheduled to be released later this week.

Canadian bank earnings season will start tomorrow, with Bank of Nova Scotia releasing its latest quarterly results Tuesday. Bay Street analysts expect the bank to report a 5% year-over-year rise in its adjusted quarterly earnings to $2.11 per share.

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 recommends BANK OF NOVA SCOTIA, Brookfield Infra Partners LP Units, CDN NATURAL RES, and FORTIS INC. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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