TSX Today: What to Watch for in Stocks on Thursday, October 27

Corporate earnings and investors’ reaction to the Bank of Canada’s latest rate hike could keep TSX stocks volatile today.

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TSX Today

The ongoing recovery in Canadian stocks gained steam on Wednesday after the Bank of Canada surprised everyone by raising the interest rates at a lower-than-expected pace. Notably, the central bank hiked the policy interest rate by 50 basis points against the Street’s expectation of 75 basis points. In its statement, however, the bank highlighted that “the policy interest rate will need to rise further” to tame inflation.

Investors broadly reacted positively to this move, as the TSX Composite Index rose by 183 points, or 1%, yesterday to settle at 19,280. Apart from the Bank of Canada’s interest rate decision, sharp gains in commodity prices also helped the Canadian market benchmark climb. While all key sectors ended the session in the green territory, the rally was mainly led by healthcare, metals mining, real estate, and energy stocks.

Top TSX movers and active stocks

Capstone Copper, Canopy Growth, Hudbay Minerals, and Turquoise Hill Resources were the top-performing TSX stocks on October 26, as they rose more than 7% each.

Shaw Communications (TSX:SJR.B) was also among the top gainers, as its share prices settled with a 7.2% gain yesterday at $36.52 per share. This rally in the Canadian telecom company’s shares came after industry minister François-Philippe Champagne’s recent comments raised hopes about the Rogers-Shaw merger deal. After being announced in March 2021, the deal faced big obstacles after the Canadian Competition Bureau started assessing the potential competitive impacts of the proposed deal. On a year-to-date basis, Shaw stock now trades with about 5% losses.

On the negative side, Shopify, Converge Technology, Canada Goose, and Dye & Durham were among the worst-performing TSX Composite components Wednesday, as they fell by at least 2.5% each.

Based on their daily trade volume, Enbridge, Canopy Growth, Crescent Point Energy, and Suncor Energy were the most active stocks on the Canadian exchange.

TSX today

After staging a rally in the last session, commodity prices across the board were trading on a mixed note early Thursday morning, pointing to a flat open for the main TSX index today. While no major domestic economic releases are due, Canadian investors may want to keep a close eye on the latest quarterly gross domestic product numbers and monthly durable goods orders from the U.S. market this morning.

On the corporate events front, large TSX-listed companies, including Canadian Utilities, Whitecap Resources, Shopify, Atco, Cameco, Teck Resources, and TFI International, will announce their latest quarterly results on October 27.

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 Shopify. The Motley Fool recommends Enbridge and ROGERS COMMUNICATIONS INC. CL B NV. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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