TSX Today: What to Watch for in Stocks on Wednesday, October 5

The ongoing October relief rally in TSX stocks could continue today, underpinned by a recovery in commodity prices.

| More on:
TSX Today

Canadian equities surged for the second consecutive session on Tuesday, as the October relief rally continued, despite weaker-than-expected U.S. job openings data. The TSX Composite Index inched up by 490 points, or 2.6%, during the day to settle at 19,371 — its highest closing level since September 16. While all key sectors on the exchange ended the session in the green, the market rally was mainly led by shares of healthcare, technology, and energy companies. With this, the main Canadian market index has risen by 5% in the last couple of sessions.

Top TSX movers and active stocks

Shopify (TSX:SHOP) was the biggest gainer on the TSX, as its share price jumped by 12.7% to $42.61 per share on October 4. While there was no important company-specific news, yesterday’s sharp gains in SHOP stock could be attributed to a tech sector-wide recovery, which comes just a few days after the stock reached its lowest level since 2019 on September 29. Despite this recent recovery, Shopify stock is still down more than 75% on a year-to-date basis.

Bombardier, Centerra Gold, Nuvei, and MEG Energy were also among the top-performing Canadian stocks yesterday, as they rose by more than 9% each.

On the negative side, shares of Dye & Durham and Hudbay Minerals were the worst TSX performers, as they fell by at least 2% each in the last session.

Based on daily trade volume, Toronto-Dominion Bank, Bank of Nova Scotia, Baytex Energy, and Cenovus Energy were the most active TSX Composite components. About 15.7 million shares of TD Bank changed hands on the exchange yesterday.

TSX today

West Texas Intermediate crude oil prices were continuing to trade on a positive note early Wednesday morning, pointing to a slightly higher open for the commodity-heavy TSX benchmark today. However, Canadian investors may want to pay attention to the monthly non-farm employment and nonmanufacturing purchasing managers index data from the U.S. market this morning, which could give further direction to stocks. Also, energy investors can eye the weekly U.S. crude oil stockpiles data today.

Richelieu Hardware, Tilray Brands, and MTY Food Group stocks could remain volatile in the near term, as these Canadian companies are set to release their latest quarterly earnings reports in the next couple of sessions.

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 MTY Food Group, Nuvei Corporation, and Shopify. The Motley Fool recommends BANK OF NOVA SCOTIA, CENTERRA GOLD INC, and RICHELIEU HARDWARE LTD. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

Man holding magnifying glass over a document
Tech Stocks

Watching This 1 Key Metric Could Help You Beat the Stock Market

One key metric that Buffett looks at is the return on equity. Here's why you should watch it.

Read more »

Daffodils in bloom
Tech Stocks

2 Best “Magnificent Seven” Stocks to Buy in April

Two surging mega-cap tech stocks are the best buys among the “Magnificent Seven” this April.

Read more »

clock time
Tech Stocks

Up 47%, Is it Time to Buy Payfare Stock?

Payfare (TSX:PAY) stock has been rising higher in the last six months after dropping significantly since 2021. Is it time…

Read more »

Clock pointing towards a 'sell' signal
Tech Stocks

2 Canadian Growth Stocks to Buy and 1 to Sell

Financial growth stocks like EQB Inc (TSX:EQB) are much cheaper than tech growth stocks.

Read more »

Target. Stand out from the crowd
Tech Stocks

The Most Expensive Stock in Canada Is a Top Buy Today

This stock might be expensive, but it's proven time and again that it's worth its weight in gold. And it's…

Read more »

Upwards momentum
Tech Stocks

CSU Stock: The Best Canadian Growth Stock Pick in Tech?

Constellation Software (TSX:CSU) stock could be in for a bit of dip over the nearer term.

Read more »

Volatile market, stock volatility
Tech Stocks

Nvidia Stock Is Falling Into a ‘Correction.’ Time to Buy the Dip?

Nvidia (NASDAQ:NVDA) has seen shares surge in the last year, but have entered correction territory after dropping over 10% from…

Read more »

Tech Stocks

Is Constellation Software Stock a No-Brainer Buy?

Even the most consistent stocks are not infallible and may be vulnerable against certain conditions. So, it’s worth researching even…

Read more »