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

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA: Invest $10,000 in This TSX Stock That Thrives During Market Volatility

This TSX stock isn't your typical investment, but that could be a major benefit for investors.

Read more »

construction workers talk on the job site
Metals and Mining Stocks

2 Canadian Mining Stocks to Buy and Hold in Your TFSA for Long-Term Resource Exposure

Cameco (TSX:CCO) and another miner could boom again in 2025.

Read more »

nugget gold
Metals and Mining Stocks

Gold Price at Record Highs: Best Ways to Add Precious Metal Exposure to Your Portfolio

With the price of gold continuing to climb in this uncertain economic environment, here are a few ways you can…

Read more »

nugget gold
Metals and Mining Stocks

2 Materials Stocks I’d Buy With $20,000 Whenever They Dip in Price

Teck Resources and Agnico-Eagle Mines offer quality materials stock exposure at a time when both companies are thriving.

Read more »

a person looks out a window into a cityscape
Metals and Mining Stocks

Why I’d Consider This Canadian Stock for My TFSA as Tariffs Reshape Markets

Cameco (TSX:CCO) stock could fortify your TFSA against tariff war headwinds, and provide growth opportunities during recessions

Read more »

Man holds Canadian dollars in differing amounts
Stocks for Beginners

Cash Is King? Think Again During Today’s Market Dip

Sure, cash is great, but during a market dip investors may want to consider using some of the cash to…

Read more »

todder holds a gold bar
Metals and Mining Stocks

2 Canadian Dividend Stocks Worth Their Weight in Gold

Agnico Eagle Mines (TSX:AEM) and Barrick Gold (TSX:ABX) are shining stocks on the TSX this quarter!

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

First Quantum Minerals: Buy, Sell, or Hold in 2025?

First Quantum stock is a strong stock, but what about the future of this TSX stock?

Read more »