TSX Today: Why Canadian Stocks Could Fall on Tuesday, July 18

Canada’s latest inflation report and retail sales data from the U.S. market could give further direction to TSX stocks today.

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 July 18, 2023 8:37 am EDT

Canadian stocks started the new week on a bearish note, as China’s lower-than-expected gross domestic product growth in the second quarter and high unemployment among youth kept investors on their toes. The S&P/TSX Composite Index slid by 35 points, or 0.2%, on Monday to settle at 20,227 after rallying by 2.2% in the previous week.

Despite a rally in some healthcare stocks, weakness in most other market sectors, including energy, utilities, and consumer cyclicals, dragged the TSX index down, as investors awaited key economic reports due later this week.

Top TSX Composite movers and active stocks

Parex Resources, Athabasca Oil, Cogeco Communications, and Spin Master were among the worst-performing TSX stocks yesterday, as they dived by at least 3% each.

On the flip side, Bausch Health Companies (TSX: BHC) jumped 9.8% in the last session to $12.26 per share, making it the top-performing TSX stock for the day. While there was no company-specific news, this rally in BHC stock came a couple of sessions after the Canadian healthcare giant informed investors that it would announce its second-quarter financial results and provide a business update on August 3. With this, BHC stock now trades with 44.2% year-to-date gains.

Endeavour Silver and Nuvei were also among the top gainers on the Toronto Stock Exchange, as they inched up by at least 3.7% each.

Shares of Prairiesky Royalty (TSX: PSK) rose 1.8% to $25.53 per share before it announced its June quarter results after the market closing bell. During the quarter, the Calgary-headquartered royalty firm posted a 40.7% year-over-year decline in its total revenue to $117.4 million. Also, Prairiesky’s adjusted quarterly earnings of $0.20 per share missed Street analysts’ estimates of $0.24 per share. Given these weak financial results, PSK stock may witness negative movement in the coming sessions.

Based on their daily trade volume, Enbridge, TC Energy, TD Bank, and Suncor Energy were the most active TSX stocks on July 17.

TSX today

Crude oil and metals prices across the board were largely mixed early Tuesday morning, pointing to a flat open for the commodity-heavy TSX index today.

Besides important retail sales data from the United States, Canadian investors may want to closely monitor the domestic consumer inflation report this morning, which could give further direction to stocks.