TSX Today: Why Canadian Stocks Could Fall on Monday, July 17

A reversal in crude oil and base metals prices could keep the commodity-heavy TSX index under pressure at the open today.

| More on:
tsx today

The Canadian stock market turned slightly negative on Friday, as fears of more interest rate hikes weighed on investors’ sentiments despite more signs of easing inflationary pressures. The S&P/TSX Composite Index slipped by 16 points in the last session to settle at 20,262, concluding the week with strong 2.2% gains.

Despite minor optimism in the shares of some consumer noncyclical and industrial stocks, all other key market sectors ended the session in red with heavy losses in technology, energy, and healthcare shares.

Top TSX Composite movers and active stocks

Telus International (TSX:TIXT) crashed nearly 31% on July 14 to close at $13.36 per share, making it the worst-performing TSX stock for the day. This massive selloff in TIXT stock came a day after the Vancouver-headquartered tech solutions provider downwardly revised its full-year 2023 outlook while announcing its preliminary second-quarter results.

According to its preliminary financial results, Telus International expects to report revenue in the range of US$660 to US$668 million for the second quarter, lower than analysts’ current expectation of US$673.4 million. Also, the company expects to post a net quarterly loss in the range of US$7-US$10 million due mainly to temporary demand imbalances and higher-than-expected expenses in some of its key markets. After its recent crash, TIXT stock is now down 50% on a year-to-date basis.

Tilray Brands, Vermilion Energy, and Bombardier were also among the bottom performers on the Toronto Stock Exchange, as they dived by at least 4.9% each in the last session.

On the positive side, Endeavour Silver, Dundee Precious Metals, Fortuna Silver Mines, and Jamieson Wellness were among the top-performing TSX stocks, as they inched up by more than 3% each.

Based on their daily trade volume, Enbridge, Telus Corp, Power Corporation of Canada, and TC Energy stood out as the most active stocks on the Canadian exchange.

TSX today

After witnessing a sharp rally last week, commodity prices, especially crude oil and base metals, were trading with heavy intraday losses early Monday morning due to weaker-than-expected China’s second-quarter gross domestic product growth data released over the weekend. Given these negative signals, I expect the resource-heavy main TSX index to remain under pressure at the open today.

Investors’ expectations from tomorrow’s key economic releases, including the U.S. retail sales and Canada’s consumer inflation data, could keep stocks volatile.

On the corporate events side, Prairiesky Royalty is set to announce its June 2023 quarter results after the market closing bell on July 17. Bay Street analysts expect the Calgary-based company to report quarterly earnings of $0.24 per share.

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 recommends Enbridge, TELUS, Telus International, Tilray Brands, and Vermilion Energy. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Energy Stocks

Oil pumps against sunset
Energy Stocks

Lower Loonie? This Sector’s a Gusher Anyway

If the Canadian dollar weakens, this one industry is set to make enormous profits, and investors can get in on…

Read more »

Electricity pylons against a sunset
Energy Stocks

Northland Power Stock: Buy, Sell, or Hold?

Northland Power (TSX:NPI) stock continues to climb on the back of strong earnings, but with a CEO and president leaving,…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

Despite its recent sharp gains, Enbridge (TSX:ENB) stock has the potential to continue inching up in the years to come…

Read more »

Nuclear power station cooling tower
Energy Stocks

Is Cameco Stock the Best Renewable Energy Stock for You?

While it's true that Cameco stock (TSX:CCO) looks like a strong clean energy solution, it's not actually even a renewable…

Read more »

Target. Stand out from the crowd
Energy Stocks

Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today

Brookfield Renewable (TSX:BEP.UN) stock saw shares rise by about 35% since earnings, but even more is on the way.

Read more »

oil and natural gas
Energy Stocks

How Baytex Energy Lost 12% Last Month

Baytex Energy (TSX:BTE) stock fell 12% last month.

Read more »

bulb idea thinking
Energy Stocks

This Stock Is Miles Ahead of Its Industry: Is It a Buy Now?

This stock has proven to be well worth the investment, especially at a time with increasing demand for clean energy…

Read more »

Oil pumps against sunset
Energy Stocks

Is Suncor Energy Stock a Buy in 2024? 

Let's dive into whether Suncor Energy (TSX:SU) is a stock that's worth buying in this current environment or if investors…

Read more »