TSX Today: What to Watch for in Stocks on Tuesday, May 16

Canadian inflation data and U.S. debt talks could keep TSX stocks highly volatile.

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tsx today

Canadian equities started the new week on a bullish note due largely to a sharp recovery in commodity prices. As a result, the resource-heavy TSX Composite Index climbed 120 points, or 0.6%, on Monday to settle at 20,540, posting its biggest single-day gains in over a week.

Even as continued uncertainties over the U.S. debt limit concerns drove consumer shares lower, strong gains in healthcare, mining, and real estate sectors kept the optimism alive.

Top TSX Composite movers and active stocks

Spartan Delta, TransAlta Renewables, Bausch Health, and Hudbay Minerals were the top-performing TSX stocks Monday, as they gained at least 4.6% each.

In contrast, shares of Centerra Gold (TSX:CG) plunged more than 18% to $7.36 per share after announcing significantly wider-than-expected losses in the March quarter. In the first quarter of 2023, the Canadian gold miner’s revenue fell 23.3% year over year to US$226.5 million.

With lower sales and a 42% increase in production costs, Centerra Gold reported US$0.24 per share in adjusted quarterly losses against Street analysts’ expectation of a US$0.07 per share loss. After lower-than-expected production in the first quarter, the company now expects its full-year 2023 gold production to be close to the low end of its outlook. Yesterday’s big selloff in CG stock trimmed its year-to-date gains to 5%.

Dye & Durham, Nuvei, and Premium Brands were also among the worst performers on the Toronto Stock Exchange, as they fell at least 2.5% each.

Based on the exchange’s daily trade volume data, Suncor Energy, Manulife Financial, Enbridge, and Tourmaline Oil were the most active TSX stocks of the day.

TSX today

After witnessing a recovery in the last session, silver and copper prices were bearish early Tuesday morning, which could pressure TSX metal and mining stocks at the open today. Besides domestic consumer inflation numbers, Canadian investors may want to closely monitor the latest monthly retail sales data from the United States this morning.

As the debt ceiling-related negotiations between U.S. president Joe Biden and congressional leaders are set to begin on May 16, investors may want to brace for higher stock market volatility.

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 Nuvei. The Motley Fool recommends Centerra Gold, Enbridge, and Tourmaline Oil. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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