TSX Today: What to Watch for in Stocks on Friday, May 5

Labour market data and corporate results may keep the TSX index volatile today, as it remains on track to end the week in the red.

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tsx today

Canadian equities slid for the fourth session in a row on Thursday, as investors continued to assess the possible impact of the Fed’s recent rate hike on the economy. The TSX Composite Index fell 116 points, or 0.6%, yesterday to settle at 20,238, taking its week-to-date losses to nearly 2%.

While robust earnings reports drove tech stocks higher, all other key Canadian market sectors ended the session in the red, led by heavy losses in the shares of healthcare, consumer, and industrial companies.

Top TSX Composite movers and active stocks

Shares of Bausch Health Companies (TSX:BHC) tumbled by 20.3% in the last session to $8 per share after its weak first-quarter results disappointed investors. During the March quarter, the Laval-headquartered pharmaceutical company’s sales rose 1.4% YoY (year over year) to US$1.9 billion.

However, foreign exchange headwinds and higher marketing and R&D costs drove Bausch Health’s adjusted quarterly earnings down 28.8% from a year ago to US$0.52 per share, missing estimates of US$0.72 per share. After yesterday’s selloff, BHC stock is now down 6% on a year-to-date basis.

Gildan Activewear, Telus International, Nutrien, and Primo Water were also among the worst-performing TSX Composite components, as they plunged by more than 6% each.

On the positive side, Shopify (TSX:SHOP) rocketed by 23.2% to $77.65 per share due mainly to its far better-than-expected quarterly results. In the first quarter of 2023, the Canadian e-commerce giant’s sales climbed 25.3% YoY to US$1.5 billion due mainly to a strong 31% positive growth in its merchant solutions revenue.

This strong top-line growth helped Shopify post US$12 million in adjusted quarterly earnings against Street analysts’ expectations of a US$40.9 million loss. SHOP stock now trades with solid 65% year-to-date gains.

SSR Mining and Wesdome Gold Mines were also among the top performers on the Toronto Stock Exchange in the last session, as they inched up by more than 5% each.

According to the exchange’s daily volume data, Enbridge, Shopify, Suncor Energy, and K92 Mining were the most active stocks for the day.

TSX today

After consistently sliding for days, crude oil prices were staging a recovery early Friday morning, which could help TSX energy stocks lift at the open today. Besides domestic monthly employment numbers, Canadian investors may also want to monitor the unemployment rate and non-farm payroll data from the United States this morning.

On the corporate events side, TSX-listed companies like Brookfield Business Partners, Brookfield Renewable Partners, TransAlta, TransAlta Renewables, Magna International, Hydro One, Enbridge, and Sprott are expected to announce their quarterly earnings on May 5.

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 Brookfield Renewable Partners, Enbridge, Gildan Activewear, Magna International, Nutrien, and TELUS. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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