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.

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.

tsx today

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

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.

More on Tech Stocks

man studies at computer
Dividend Stocks

Here Are The 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

Discover strategies for investing in stocks that can help you thrive in a market filled with volatility and uncertainty.

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution Before 2026 Is Over

Put your $7,000 TFSA contribution to work before 2026 ends. Explore BMO, CN and Constellation Software for income and long-term…

Read more »

moving into apartment
Tech Stocks

Your TFSA Contribution Room Could Be Larger Than You Think

Shopify Inc (TSX:SHOP) stock has delivered large returns. Those who cashed out TFSA SHOP positions may have more room than…

Read more »

woman relaxes with phone
Dividend Stocks

BCE Cut its Dividend: Has the Stock Become a Better Income Investment?

BCE’s new payment offers income, but cash after spending still has to support the recovery.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

Celestica Stock: Is AI Growth Worth the Risk in a Retirement Portfolio?

Celestica offers retirement growth potential, with a cash-flow trade-off that deserves more attention than sales alone.

Read more »

A person's hand cupped open with a hologram of an AI chatbot above saying Hi, can I help you
Tech Stocks

CGI vs. OpenText: Which Canadian Tech Stock Offers the Better Long-Term Case?

CGI gets my long-term preference, while OpenText offers a recovery case that still needs stronger sales.

Read more »

young adult uses credit card to shop online
Tech Stocks

Is Shopify Stock Too Expensive? A Great Quarter Meets a Sky-High Valuation

Shopify's latest quarter was impressive, but its expensive valuation could make investors think twice before buying.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

BCE Just Reported: What $10,000 Could Earn You in Dividends Today

BCE is yielding a very generous 5.2%, as the company's telecom business improves and long-term investments drive growth.

Read more »