TSX Today: What to Watch for in Stocks on Thursday, January 26

Volatility in TSX index may remain intact today, as investors continue to react to the latest monetary policy report.

| More on:
tsx today

Canadian stocks remained volatile on Wednesday after the Bank of Canada announced its decision to raise the policy interest rate by 0.25%. The TSX Composite Index dived as much as 227 points in intraday trading. However, sharp gains in technology stocks later helped the market benchmark recover to end the session at 20,600 with a 30-point loss.

Besides tech stocks, shares of metal mining companies also showcased strength. However, big intraday losses in the industrials and energy sectors kept the main TSX index under pressure.

On the one hand, the Bank of Canada said it “expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases.” On the other hand, the central bank also indicated that it’s prepared to raise the policy rate further if needed to achieve the 2% inflation goal.

Top TSX Composite movers and active stocks

Shopify stock popped about 11% to close at $63.34 per share after the Canadian e-commerce giant raised the monthly and yearly pricing for its Basic, Shopify, and Advanced plans. After this rally, SHOP’s share prices have surged nearly 35% in January so far.

Metal and mining stocks like Silvercrest Metals, Fortuna Silver Mines, Centerra Gold, Endeavour Silver, and First Majestic Silver were also among the top performers on the Toronto Stock Exchange yesterday, as they inched up by at least 4% each with strengthening precious metals prices.

On the flip side, Advantage Energy, Canadian National Railway, Birchcliff Energy, and Canadian Pacific Railway were the worst-performing stocks, as they slipped by at least 3.7% each.

Based on their daily trade volume, Equinox Gold, Dundee Precious Metals, Shopify, and Ballard Power Systems were the most active stocks on the main TSX index.

TSX earnings updates

The Canadian electronics manufacturer Celestica (TSX:CLS) released its December quarter financial report after the market closing bell on Wednesday. In the fourth quarter, its total revenue rose by 35% YoY (year over year) to $2.04 billion with the help of solid 39% positive sales growth in its connectivity & cloud solutions segment. As a result, Celestica reported adjusted quarterly earnings of $0.56 per share, exceeding analysts’ estimates and reflecting a 27% YoY increase. The company plans to hold its earnings conference call Thursday morning. As of yesterday’s closing, CLS stock has risen by 15.5% in 2023.

NovaGold Resources also announced its November quarter results on January 25. The gold miner reported a wider-than-expected adjusted quarterly net loss of US$0.04 per share due to the recent expansion of its Donlin Gold drilling work and increased interest on the promissory note.

TSX today

Except for West Texas Intermediate crude oil futures, most commodities were trading on a slightly negative note early Thursday morning. This weakness could pressure the commodity-heavy TSX index at the open today.

While no important domestic economic releases are due, investors may want to keep a close eye on the latest gross domestic product, goods orders, new home sales, and weekly jobless claims data from the U.S. market this morning.

Market movers on the TSX today

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 Canadian National Railway, Canadian Pacific Railway, and Centerra Gold. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

Better Artificial Intelligence Stock: UiPath vs. C3.ai

Deciding between UiPath and C3.ai isn't easy since both have strengths and weaknesses.

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

A shopper makes purchases from an online store.
Tech Stocks

1 Tech Stock I’d Buy Before Shopify

Shopify (TSX:SHOP) stock might be stagnating, which could mean this other tech stock is at a prime advantage.

Read more »

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »