Canadian equities showcased strength for the second session in a row as cooler-than-expected domestic inflation data and a strong U.S. consumer confidence report pleased investors. The S&P/TSX Composite Index climbed 146 points, or 0.7%, on Tuesday to settle at 19,733.
Despite weakness in energy stocks due to an intraday drop in oil and gas prices, most other TSX sectors, primarily consumer cyclicals, industrials, and real estate, posted healthy gains yesterday.
According to Statistics Canada, despite a big jump in mortgage interest cost, the consumer price index (CPI) witnessed a 3.4% YoY (year-over-year) increase in May 2023 due mainly to easing gasoline prices. With this, Canada’s CPI posted its smallest gain since June 2021. To add optimism, the U.S. consumer confidence index stood at 109.7 in June, its highest level since January 2022.
Top TSX Composite movers and active stocks
TFI International, Lightspeed Commerce, BlackBerry, and Nuvei were the top-performing TSX stocks in the last session, as they inched up by more than 5% each.
On the flip side, Spartan Delta and Eldorado Gold fell 3.1% each, making them the day’s bottom performers on the Toronto Stock Exchange.
Shares of Alimentation Couche-Tard (TSX:ATD) advanced by roughly 1% on June 27 to $65.35 per share before its latest quarterly financial results came out after the market closing bell. In the fourth quarter of its fiscal year 2023 (ended in April), the Laval-headquartered convenience store company’s sales fell slightly by 1% YoY to US$16.26 billion but exceeded analysts’ expectations of US$15.93 billion.
Furthermore, Couche-Tard’s adjusted quarterly earnings jumped 29.1% YoY to US$0.71 per share, crushing Street’s estimate of US$0.49 per share by a big margin. Year to date, ATD stock is now up 9.8%, and its upbeat fourth-quarter results could potentially help it climb higher in the near term.
Based on their daily trade volume, TD Bank, TC Energy, Suncor Energy, and Canadian Natural Resources were the most heavily traded stocks on the exchange.
TSX today
This week’s TSX rally might take a breather, as metals prices were trading on a weak note early Wednesday morning, which could pressure mining stocks at the open today. While no major domestic economic releases are due, Federal Reserve chair Jerome Powell’s remarks during the European Central Bank Forum and the U.S. crude oil stockpiles data will remain on Canadian investors’ radar this morning.
On the corporate events side, the Waterloo-headquartered software firm BlackBerry is expected to announce its latest quarterly results after the market closing bell on June 28.
Market movers on the TSX today
