TSX Today: What to Watch for in Stocks on Tuesday, May 30

Weakening gold and oil prices could pressure TSX mining and energy stocks at the open today, as investors continue to monitor developments related to the U.S. debt-ceiling deal.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published May 30, 2023 8:35 am EDT

The stock market in Canada remained largely positive on Monday, as investors continued to assess the potential impact of the tentative U.S. debt limit deal on the economy. Even as the U.S. market remained closed for Memorial Day, the S&P/TSX Composite Index advanced by 48 points, or 0.2%, for the day to settle at 19,968.

Despite minor losses on Canadian consumer stocks, other key market sectors like healthcare, financials, and real estate stock climbed to help the index notch a second consecutive day of gains.

Top TSX Composite movers and active stocks

Canadian Western Bank (TSX: CWB) recovered by 5.5% Monday to $24.26 per share after losing nearly 6% of its value in the previous session. Despite its weaker-than-expected April quarter top- and bottom-line figures, yesterday’s recovery in CWB stock could primarily be attributed to a banking sector-wide optimism due mainly to recent U.S. debt-ceiling, deal-related developments.

Notably, higher provision for credit losses trimmed Canadian Western Bank’s profit last quarter, despite a minor increase in its revenue. With this, its share prices currently trade without any notable change on a year-to-date basis.

Converge Technology, AltaGas, and Canada Goose were also among the top-performing TSX stocks on May 29, as they inched up by at least 2.8% each.

On the flip side, International Petroleum, NovaGold Resources, and Brookfield Business Partners were the worst performers on the Toronto Stock Exchange, as they fell more than 2% each.

According to the exchange’s daily volume numbers, Manulife Financial, Suncor Energy, Great-West Lifeco, and Baytex Energy were the most active stocks for the day.

TSX today

Commodity prices, especially West Texas Intermediate crude oil futures and gold, were bearish early Tuesday morning, pointing to a lower open for TSX gold mining and energy stocks today. While no major domestic economic releases are due, Canadian investors may want to keep a close eye on the latest U.S. consumer confidence data and more details on the debt-ceiling deal.

The stock market participants have so far reacted positively to the U.S. debt ceiling deal. However, recently released strong personal consumption expenditure data may give the Federal Reserve more room to raise interest rates, which may keep tech investors on edge in the near term.