TSX Today: What to Watch for in Stocks on Thursday, October 19

The U.S. Fed chair Jerome Powell’s comments about the economic outlook will remain on TSX investors’ radar 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 October 19, 2023 9:00 am EDT

Despite the consistent strength in commodity prices, the Canadian stock market fell sharply on Wednesday, as the U.S. 10-year treasury bond yields reached their highest level in over 16 years, reigniting fears of an upcoming recession. The S&P/TSX Composite Index dived by 242 points, or 1.2%, yesterday to settle at 19,451 after reaching its highest level in three weeks in the previous session.

While nearly all main market sectors ended the session in red, the TSX selloff was primarily led by heavy losses in industrial, consumer noncyclical, real estate, and bank stocks.

Top TSX Composite movers and active stocks

Shares of Lithium Americas (TSX: LAC) tanked 10% to $11.16 per share, making it the worst-performing TSX stock for the day. This decline came after the Deutsche Bank analysts downgraded their ratings on LAC stock to “hold” while trimming their target price to $7 per share. With this, LAC stock has seen 16.6% value erosion in the last five sessions.

BRP, ATS, CI Financial, and Tilray Brands were also among the bottom performers on the Toronto Stock Exchange, slipping by more than 5% each.

On the flip side, Paramount Resources and Dye & Durham inched up by over 3% each in the last session, making them the top-performing TSX stocks for the day.

According to the exchange’s daily trade volume data, TC Energy, Algonquin Power & Utilities, Tourmaline Oil, Baytex Energy, and Enbridge were the five most active stocks.

TSX today

Commodity prices were mixed early Thursday morning, pointing to a flat open for the main TSX index today. While no major domestic economic releases are due, Canadian investors may want to closely watch monthly manufacturing, existing home sales, and weekly jobless claims data from the U.S. market this morning.

The Federal Reserve chair Jerome Powell is expected to speak about the economic outlook at the Economic Club of New York this afternoon. Powell’s comments about the economy and monetary policy might keep stocks volatile.

On the corporate events side, the third-quarter earnings season in Canada will start with the TSX-listed Mullen Group (TSX: MTL) announcing its financial results on October 19. Bay Street analysts expect the Okotoks-based logistics company to post $0.35 in adjusted quarterly earnings with the help of $494.4 million in revenue. On a year-to-date basis, MTL stock currently trades with an 8% decline.