TSX Today: What to Watch for in Stocks on Thursday, September 29

TSX stocks could remain volatile today, as investors react to the latest quarterly U.S. GDP numbers.

| More on:
TSX Today

Canadian stocks staged a sharp recovery from their lowest level in over a year on Wednesday to break a six-day long losing streak. The S&P/TSX Composite Index rose by 341 points, or 1.9%, yesterday to settle at 18,649. A much lower-than-expected weekly U.S. crude oil stockpiles data triggered a sharp rally in West Texas Intermediate crude oil prices, leading to a recovery in Canadian energy stocks.

Similarly, metals prices bounced back in spectacular fashion, which drove metal mining stocks on the TSX sharply higher. Also, notable gains in health care, real estate, and technology sectors underpinned the stock market rally.

Top TSX movers and active stocks

Shares of precious metal mining companies like Equinox Gold, Eldorado Gold, Endeavour Silver, Torex Gold Resources, and Fortuna Silver Mines were the top-performing TSX stocks on September 28, as they inched up by more than 10% each.

On the negative side, shares of Algoma Steel Group (TSX:ASTL)(NASDAQ:ASTL) tanked by 10% to $9.15 per share, making it the worst-performing TSX Composite component for the day. Yesterday’s sharp losses in ASTL stock came after the company provided disappointing September quarter guidance.

Algoma expects its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter to be in a range of $75 million to $80 million — significantly lower than analysts’ estimate of around $104.3 million. The Ontario-based hot and cold rolled steel products producer blamed a recent “production shortfall due to various operational challenges” for its disappointing quarterly guidance. Algoma Steel stock now trades with 32.6% year-to-date losses.

Shares of Labrador Iron Ore Royalty, Innergex Renewable Energy, and Brookfield Infrastructure Partners were also among the bottom performers on Wednesday, as they fell by more than 2% each.

Based on their daily trade volume, Power Corporation of Canada, Bank of Nova Scotia, Suncor Energy, and Barrick Gold were the most active TSX stocks in the last session.

TSX today

Early Thursday morning, crude oil and copper prices continued to showcase strength, but precious metals were trading negatively. Given these mixed signals from the commodities market, I expect the TSX Composite benchmark to open marginally higher from its previous closing level today.

Canadian investors may want to keep a close eye on the domestic monthly GDP (gross domestic product) data this morning. Also, other key economic releases from the U.S. market, including second-quarter GDP numbers and weekly jobless claims, could give further direction to stocks.

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 and Brookfield Infra Partners LP Units. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

young woman celebrating a victory while working with mobile phone in the office
Metals and Mining Stocks

Beat the TSX With This Unstoppable Dividend Stock

This dividend stock continues to outpace the TSX and then some, providing you with a dividend that you'll want to…

Read more »

A worker drinks out of a mug in an office.
Metals and Mining Stocks

5 Things to Know About Nutrien Stock in December 2022

Trading at heavily depressed multiples, Nutrien stock is a great opportunity, as it delivers solid financial results and an optimistic…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Wednesday, November 30

The TSX is set to end the second consecutive month in positive territory today, as it has already climbed by…

Read more »

Gold bars
Metals and Mining Stocks

Better Buy: Newmont or Barrick Gold Stock?

If you think better days are ahead for gold miners, consider exploring gold stocks Newmont and Barrick Gold.

Read more »

Target. Stand out from the crowd
Metals and Mining Stocks

1 Volatile Stock I’d Buy Again and Again

Nutrien (TSX:NTR) stock is a valuable stock I'll buy over and over due to its huge deal combined with record-setting…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Friday, November 25

TSX stocks could remain range bound, as the U.S. markets are set to close early today.

Read more »

stock market
Metals and Mining Stocks

Should You Invest in TSX Mining Stocks Right Now?

A key TSX mining index has gained 16% so far this quarter. Newmont stock (TSX:NGT) could be a rewarding bet…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Wednesday, November 23

Investors may want to limit their risk exposure ahead of the U.S. Thanksgiving holiday.

Read more »