TSX Today: What to Watch for in Stocks on Tuesday, July 25

An early morning rally in metals prices could lift TSX mining stocks at the open 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 25, 2023 8:27 am EDT

Rallying crude oil and base metals prices helped Canadian stocks start the new week with minor optimism despite the release of weaker-than-expected U.S. services purchasing managers index data. As a result, the S&P/TSX Composite Index rose 35 points on Monday to settle at 20,582.

Besides energy stocks, other key market sectors like real estate and consumer non-cyclical pushed the index higher, while most utility stocks slipped ahead of the start of the second-quarter earnings season.

Top TSX Composite movers and active stocks

Nutrien (TSX: NTR) stock gained 2.7% yesterday to settle at $84.95 per share, making it among the top-performing TSX stocks. This positive movement came after analysts at Wells Fargo upgraded their ratings on NTR stock from “equal weight” to “overweight” and raised their target price from $62 per share to $82 per share.

Notably, Nutrien is gearing up to announce its latest second-quarter results next week on August 2. According to Street analysts’ latest consensus estimates, its quarterly earnings are expected to decline by 51.6% year over year to $2.83 per share, possibly due to weakening industrial demand’s negative impact on global nitrogen trade. Year to date, Nutrien stock is now down 11.8%.

Strengthening oil prices drove energy stocks like Cenovus Energy, Imperial Oil, and Athabasca Oil up by at least 2.6% each in the last session.

Conversely, Aritzia, First Majestic Silver, Mullen Group, and Fortuna Silver Mines were the bottom performers on the Toronto Stock Exchange, as they fell at least 2.9% each.

Based on their daily trade volume, Enbridge, TC Energy, Manulife Financial, and Athabasca Oil were the most heavily-traded stocks on the exchange.

TSX today

After rallying to their highest level in over three months, West Texas Intermediate crude oil futures prices were mixed early Tuesday morning, but metals prices were largely bullish. Given these signals from the commodity markets, I expect the main TSX index to remain slightly positive at the open today.

Canadian investors may want to keep a close eye on the latest monthly consumer confidence from the United States this morning, which could give further direction to stocks.

On the corporate events side, TSX-listed companies Canadian National Railway and First Quantum Minerals are expected to announce their latest quarterly financial results after the market closing bell on July 25.