Canadian equities started the new week on a slightly positive note, as investors braced for a week of U.S. inflation numbers and more corporate earnings. The S&P/TSX Composite Index rose 90 points, or 0.4%, on Monday to settle at 20,702, even as many commodity-linked stocks trended downward.
While weakness in oil and precious metals prices drove most energy and mining shares lower, sharp gains in other main market sectors like consumer cyclicals, healthcare, and utilities mainly lifted the main TSX index.
Top TSX Composite movers and active stocks
Shares of Russel Metals (TSX:RUS) rose 6.2% to $35.96 per share yesterday, marking its second consecutive session of strong gains. The recent rally in RUS stock started late last week after the Mississauga-based metals firm released its better-than-expected fourth-quarter earnings.
Despite a 4.1% year-over-year decline in its quarterly revenue due to lower steel prices, Russel’s adjusted earnings of $0.93 per share managed to exceed Street analysts’ consensus estimate of $0.78 per share with the help of its improving energy field stores business. Russel Metals stock now trades with solid 25% year-to-date gains after losing more than 14% of its value last year.
Capstone Copper, Advantage Energy, and Magna International were also among the top-performing TSX stocks on February 13, as they climbed at least 3.3% each.
In contrast, B2Gold, Dye & Durham, Energy Fuels, and BELLUS Health dived by at least 2.5% each, making them the bottom performers on the Toronto Stock Exchange.
According to daily trade volume figures, Suncor Energy, B2Gold, Enbridge, and Canadian Natural Resources were the most active Canadian stocks.
Before the market opening bell on Tuesday, the U.S. Bureau of Labor Statistics is set to release January Consumer Price Index (CPI) data, which is likely to give investors an idea about the latest inflationary trends and drive stocks accordingly. Given this important economic release, I expect the main TSX index to remain highly volatile at the open today.
On the corporate events front, large Canadian companies, including Toromont Industries, West Fraser Timber, First Quantum Minerals, Suncor Energy, CAE Inc, Hydro One, TC Energy, Restaurant Brands, Dream Industrial REIT, and CT REIT, and expected to release their latest quarterly results on February 14. Besides investors’ reactions to the latest CPI data, these corporate earnings could add to the market volatility and give further direction to the stock market.