TSX Today: Why Canadian Stocks Could Fall on Tuesday, May 23

While falling commodity prices could pressure the TSX index today, investors will primarily remain focused on the U.S. debt talks.

The Canadian stock market remained slightly bullish before going into a three-day weekend, as investors reacted positively to largely better-than-expected retail sales numbers. With this, the S&P/TSX Composite Index rose 54 points on Friday to settle at 20,351, ending the third consecutive session with minor gains.

While consumer cyclical and healthcare stocks witnessed losses, healthy gains in other key market sectors, including energy, utilities, and consumer non-cyclicals, kept the optimism alive, despite the continued U.S. debt ceiling standoff.

tsx today

Top TSX Composite movers and active stocks

Birchcliff Energy, Ritchie Bros Auctioneers, and Constellation Software were among the top-performing TSX stocks in the last session, as they inched up by more than 3% each on May 19.

On the flip side, shares of Canada Goose (TSX: GOOS) dived nearly 7% on Friday to below $23 per share after tanking by more than 10% in the previous session. This recent selloff in GOOS stock came after the Toronto-headquartered clothing company announced its fiscal year 2023 (ended on April 2, 2023) financial results on May 18.

While Canada Goose’s annual revenue rose 10.8% year over year to $1.22 billion and exceeded analysts’ estimates, its adjusted annual earnings of $1.05 declined 3.7% from the previous year and also missed Street’s expectations. An increase in obsolete raw material provisioning and higher product costs were two of the main factors that affected the company’s margins in recent quarters. On a year-to-date basis, GOOS stock is now down 4.6%.

Ballard Power Systems, Denison Mines, and Aritzia were also among the worst performers on the Toronto Stock Exchange, as they plunged by at least 3.5% each.

Based on their daily trade volume, Tourmaline Oil, Manulife Financial, Enbridge, and B2Gold were the most heavily traded stocks on the exchange.

TSX today

The commodity-heavy main TSX index could fall at the open today, as metals and natural gas prices are continuing to witness a selloff this week, as investors remain worried about the U.S. debt limit concerns. While no key domestic economic releases are due, Canadian investors may want to closely monitor the building permits and new home sales data from the U.S. market this morning.

In addition, the ongoing debt ceiling negotiations will remain on TSX investors’ radar, with the U.S. inching closer to potentially defaulting on Federal debt with each passing day.

Market movers on the TSX today

The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends B2Gold, Constellation Software, 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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