TSX Today: What to Watch for in Stocks on Tuesday, June 6

TSX stocks may remain volatile today, as traders adjust their open positions ahead of Bank of Canada’s interest rate decision scheduled for Wednesday.

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 June 6, 2023 8:25 am EDT

Canadian equities turned slightly negative on Monday after posting their biggest single-day gains in over six months in the previous session. As weaker-than-expected non-manufacturing and services purchasing managers index (PMI) data from the United States disappointed investors, the S&P/TSX Composite Index fell 93 points, or 0.5%, yesterday to close at 19,932.

While all main sectors, except technology, ended the session in red territory, shares of healthcare, financials, and consumer non-cyclical companies led the market pullback.

Top TSX Composite movers and active stocks

Shares of Richelieu Hardware (TSX: RCH) slipped 4.2% on June 5 to $41.98 per share, making it one of the worst-performing TSX stocks of the day. This weakness came after Canadian Imperial Bank of Commerce downgraded its rating on RCH stock from “outperform” to “neutral.” Notably, the Montréal headquartered spatiality hardware company’s sales growth rate in the first quarter of its fiscal year 2023 (ended in February) stood at 4.8% year over year — significantly weaker than 29.2% a year ago.

Despite the positive contribution of new acquisitions, gradually subsiding pandemic-driven demand for Richelieu’s products affected its top line last quarter. On a year-to-date basis, its share prices are still up nearly 16%.

Canopy Growth, Filo Mining, and Teck Resources were also among the bottom performers on the Toronto Stock Exchange yesterday, as they plunged by more than 4% each.

On the positive side, IAMGOLD, Torex Gold, Shopify, and Cameco were the top-performing TSX stocks, as they inched up by at least 2.8% each.

Based on their daily trade volume, Suncor Energy, Canadian Natural Resources, Rogers Communications, and Crescent Point Energy were the most active stocks on the exchange.

TSX today

Early Tuesday morning, commodity prices across the board were largely trading on a weak note, pointing to a lower open for the resource-heavy main TSX index today. Besides domestic PMI numbers, Canadian investors may want to keep an eye on the U.S. Energy Information Administration’s latest short-term energy outlook report this morning.

Overall, TSX stocks may remain volatile, as traders adjust their open positions ahead of Bank of Canada’s upcoming interest rate decision scheduled for Wednesday.