TSX Today: What Could Increase Stock Market Volatility on Wednesday, October 26?

An overnight rally in commodity prices could help the main TSX index open higher today.

Stocks in Canada inched up for a third consecutive session on Tuesday. The TSX Composite Index rose by 179 points, or 0.9%, for the session to settle at 19,097 — its highest closing level in more than two weeks. Broadly better-than-expected corporate earnings apparently boosted investors’ confidence, despite a weaker-than-expected U.S. consumer confidence data for October. While all key sectors on the TSX posted gains, the rally was mainly led by the healthcare, real estate, consumer, and technology sectors.

TSX Today

Top TSX movers and active stocks

Shares of Canopy Growth (TSX: WEED) skyrocketed by about 26% to $3.96 per share, making it the top-performing TSX stock yesterday. This spectacular rally in WEED stock came after it announced the formation of a new U.S.-domiciled holding company, Canopy USA. This new business entity will hold Canopy Growth’s U.S. cannabis investments to accelerate its market entry in the world’s largest cannabis market. Despite this sharp rally, Canopy stock still trades with massive 64% year-to-date losses.

Celestica (TSX: CLS) jumped by 16% in the last session to settle at $15.10 per share after releasing its better-than-expected third-quarter results. The company’s total revenue in the September quarter rose by 31.1% from a year ago with the help of new project ramps in its advanced technology solutions segment and robust demand for its hardware platforms solutions. These factors drove Celestica’s quarterly adjusted earnings up by 48.6% year over year to $0.52 per share, exceeding analysts’ estimate of around $0.45 per share. Year to date, CLS stock now trades with 7% gains.

Tilray Brands, Cronos Group, Nuvei, and IAMGOLD were also among the top performers on October 25, as they advanced by at least 6% each.

On the flip side, shares of NFI Group, NovaGold Resources, Turquoise Hill Resources, and Parkland slipped by at least 2% each to become the worst-performing TSX Composite components for the day.

Based on their daily trade volume, Royal Bank of Canada, Canopy Growth, Suncor Energy, and Toronto-Dominion Bank were the most traded stocks on the Toronto Stock Exchange.

TSX today

Early Wednesday morning, oil and metals prices were trading on a strong bullish note, which should help the commodity-heavy TSX benchmark to open higher today. Bank of Canada is set to announce its latest interest rate decision this morning, which could increase the market volatility. Experts largely expect the central bank to hike the policy rate by another 75 basis points. Apart from corporate earnings, TSX investors may also want to keep an eye on the new home sales and crude oil stockpiles data from the U.S. market today.

Several Canadian companies like Methanex, Agnico Eagle Mines, TMX Group, Canadian Pacific Railway, Allied Properties REIT, Alamos Gold, Crescent Point Energy, FirstService, West Fraser Timber, and OceanaGold are likely to announce their latest quarterly results on October 26.

The Motley Fool has positions in and recommends Nuvei Corporation. The Motley Fool recommends FirstService Corporation, SV, METHANEX CORP, NFI Group, TMX GROUP INC. / GROUPE TMX INC., and West Fraser Timber Co. Ltd. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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