TSX Today: Why Canadian Stocks Could Rally on Wednesday, February 8

Continued recovery in commodity prices could lift the main TSX index at the open today.

| More on:
tsx today

The Canadian stock market roller-coaster ride continued on Tuesday, as investors continued to assess the possibility of a looming recession amid a rough corporate earnings season. Despite opening slightly lower from its previous closing, the S&P/TSX Composite Index ended yesterday’s session at 20,725 with 96-point, or 0.5%, gains, as the Federal Reserve chair Jerome Powell’s comments about easing inflation sparked a late market rally.

Although the shares of utilities and consumer noncyclicals companies fell sharply on February 7, an intraday recovery in commodity prices across the board lifted the commodity-linked Canadian market sectors.

Top TSX Composite movers and active stocks

Shares of Lithium Americas (TSX:LAC) popped by nearly 10% in the last session to settle at $34.68 per share after a favourable court ruling related to its Thacker Pass project boosted its investors’ confidence. In a press release, the Vancouver-headquartered lithium company said that the U.S. District Court’s latest ruling “confirms the permitting process for Thacker Pass was conducted thoroughly and responsibly, and results in there being no impediment to commencing construction.”

Notably, the Thacker Pass project is 100%-owned by Lithium Americas, which it claims to be the largest known lithium resource in the United States. With this, LAC stock now trades with 35.1% year-to-date gains.

First Quantum Minerals, TFI International, and BELLUS Health were also among the top-performing TSX stocks yesterday, as they inched up by at least 5.9% each.

In contrast, shares of Canopy Growth, Finning International, Quebecor, Empire Company, and Hydro One slipped by at least 2.5% each, making them the bottom performers for the day on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Suncor Energy, Manulife Financial, and Barrick Gold were the most active stocks on the exchange.

TSX today

After bouncing back from their lowest level in many weeks, crude oil and precious metals prices continued to strengthen further early Wednesday morning. Given these positive signals from the commodities market, I expect the main TSX index to open higher today with expected sharp gains in energy and mining stocks.

While no domestic economic releases are due, Canadian energy investors may want to keep a close eye on the latest crude oil stockpiles data from the U.S. this morning.

On the corporate events front, TSX-listed companies like SmartCentres REIT, Sun Life Financial, and Great-West Lifeco are expected to announce their latest quarterly results after the market closing bell on February 8.

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 recommends Enbridge and SmartCentres Real Estate Investment Trust. 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

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

risk/reward
Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »