The Canadian equities market turned negative on Tuesday after rising in seven out of the previous eight sessions, as investors continued to carefully assess macroeconomic risks. Despite the release of Canada’s cooler-than-expected consumer inflation numbers for the second consecutive month, the S&P/TSX Composite Index slipped by 137 points, or 0.7%, yesterday to 20,110 after the U.S. Fed’s latest meeting minutes suggested that the central bank will continue with quantitative tightening and didn’t rule out the possibility of “additional policy firming.”
Even as a handsome rally in precious metals prices drove the shares of gold and silver miners upward, most other main market sectors posted big losses, with consumer, healthcare, and utility stocks leading the TSX selloff.
Top TSX Composite movers and active stocks
Shares of George Weston (TSX:WN) plunged by 5.7% to $155.32 per share to post their worst single-day performance since March 2020. These big declines in WN stock came after the Toronto-based firm announced its slightly weaker-than-expected third-quarter earnings.
In the quarter ended in September 2023, George Weston’s total revenue rose 5.1% year over year to $18.4 billion with the help of positive growth in its subsidiary Loblaw’s retail sales and financial services revenue. While its adjusted quarterly net profit of $466 million reflected a 2.9% increase from a year ago, it missed Street analysts’ expectations of $478 million. After the recent weakness, WN stock now trades with 7.5% year-to-date losses.
TransAlta, Capital Power, and Celestica were also among the bottom performers on the Toronto Stock Exchange in the last session, as they fell at least 4.9% each.
On the flip side, rising precious metals prices drove mining stocks like Centerra Gold, First Majestic Silver, Alamos Gold, and Endeavour Silver by at least 4.5% each, making them the day’s top-performing TSX stocks.
Based on their daily trade volume, Suncor Energy, Enbridge, Canadian Natural Resources, Great-West Lifeco, and Tourmaline Oil were the five most active stocks on the exchange.
Crude oil, natural gas, and metals prices were largely weak early Wednesday morning, which could pressure the commodity-heavy main TSX index at the open today.
Besides paying attention to the monthly durable goods orders, weekly jobless claims, and crude oil stockpile data from the United States this morning, Canadian investors may also want to keep a close eye on the Bank of Canada governor Tiff Macklem’s speech at the Saint John Region Chamber of Commerce before noon, which could give further direction to TSX stocks.
Overall, traders may remain extra cautious today as the U.S. market remains closed tomorrow for Thanksgiving Day.