TSX Today: What to Watch for in Stocks on Friday, February 17

Weakening commodity prices and rate-hike fears could drive TSX index lower at the open today.

| More on:
tsx today

The Canadian stock market turned negative on Thursday, as hotter-than-expected wholesale inflation data from the United States unnerved investors by raising the possibility of more interest rate hikes in the near term. As a result, the S&P/TSX Composite Index dived by 114 points, or 0.6%, yesterday to settle at 20,606.

According to the U.S. Bureau of Labour Statistics, the producer price index for final demand advanced by 0.7% last month, posting its biggest increase in seven months. This was one of the key reasons why shares of Canadian tech companies plunged sharply in the last session. Besides that, weakening oil and gas prices also pressured energy stocks on the Toronto Stock Exchange.

Top TSX Composite movers and active stocks

Shares of Shopify (TSX:SHOP) tanked by 15.5% to $60.39 per share, making it the worst-performing TSX stock for the day. This massive selloff in SHOP stock came a day after the company released its upbeat fourth-quarter financial results after the market closing bell on Wednesday.

In the December quarter, the Canadian e-commerce giant registered 26% year over year with the help of a solid 30% jump in its merchant solutions revenue. While Shopify managed to beat analysts’ top and bottom-line estimates last quarter, its dismal 2023 outlook seemingly disappointed investors. The tech firm expects its revenue growth to be “in the high-teen percentages” in the ongoing year. On a year-to-date basis, SHOP now trades with 28.5% gains.

MTY Food Group, Ballard Power Systems, and Cenovus Energy were also among the worst performers on the exchange, as they plunged by at least 4.5% each.

On the flip side, Ero Copper, Canadian Tire, and Teck Resources inched up by at least 5% each, making them the top-performing TSX stocks for the day.

Based on their daily trade volume, Manulife Financial, Enbridge, Cenovus Energy, Suncor Energy, and Summit Industrial Income REIT were the most active Canadian stocks. Notably, about 26.7 million shares of Manulife changed hands on the exchange yesterday.

TSX today

Commodity prices across the board, especially metals, were trading with heavy losses early Friday morning. Given these negative signals, I expect the resource-heavy TSX index to trade on a bearish note at the open today with expected sharp declines in mining and energy stocks.

While no important economic releases are due, Canadian investors may want to remain cautious before going into the long Family Day weekend. Note that the U.S. markets will also remain closed on Monday for Washington’s birthday.

On the corporate events front, Canadian companies like Air Canada and Uni-Select are expected to announce their latest quarterly results on February 17.

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 MTY Food Group and Shopify. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Tech Stocks

A worker uses a double monitor computer screen in an office.
Tech Stocks

Better Buy: Shopify vs. Constellation Software

Are you interested in buying a tech stock? Find out which is the better buy between Shopify and Constellation Software.

Read more »

Woman has an idea
Tech Stocks

3 No-Brainer Stocks to Buy for Less Than the Cost of 1 Tesla Share

Are you confused as to whether to buy Tesla shares? Here are three no-brainer stocks that can give you exposure…

Read more »

Tech Stocks

1 Under-the-Radar Beneficiary From the Rise of ChatGPT

ChatGPT will benefit AI-enabled stocks like Docebo (TSX:DCBO).

Read more »

Businessman holding AI cloud
Tech Stocks

TFSA: 2 AI Growth Stocks for Your $6,500 Contribution

Here are two of the best AI stocks to buy in Canada in 2023.

Read more »

edit Colleagues chat over ketchup chips
Tech Stocks

The Best Stocks to Invest $50,000 in Right Now

You can create a portfolio of undervalued stocks with $50,000 right now. Here are three such stocks you can add…

Read more »

Tech Stocks

The Safest Semiconductor Chip Stocks to Own in March 2023

Canadians can invest in two safe semiconductor chip stocks, as the country prepares to expand its industry presence and become…

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Tech Stocks

Market Tremors: Buy These ETFs While Everyone Else Is Selling

The US bank crisis has triggered a sell-off raising the risk of a stock market crash. It’s time to buy…

Read more »

Two colleagues working on new global financial strategy plan using tablet and laptop.
Tech Stocks

Treasure Hunting South of the Border: The 2 U.S. Stocks I’d Buy Today

Expand the horizon of your TFSA portfolio south of the border. Here are two stocks that have the potential for…

Read more »