TSX Today: What to Watch for in Stocks on Friday, December 1

The main TSX index rallied 7.2% last month, posting its best monthly performance since November 2020.

| More on:
tsx today

The ongoing rally in the Canadian stock market gained pace on Thursday as stable U.S. personal consumption expenditure data and Canada’s weaker-than-expected gross domestic product growth figures gave hope to investors that the central banks might not need to raise interest rates further. The S&P/TSX Composite Index inched up by 120 points, or 0.6%, yesterday to settle at 20,236, near its highest closing level in more than two months.

Despite continued losses in consumer noncyclical and tech stocks, strong gains in other main market sectors, including financials, industrials, and energy, pulled the main TSX benchmark higher.

With this, the index ended November 2023 with solid 7.2% gains, marking its best monthly performance after November 2020.

Top TSX Composite movers and active stocks

International Petroleum and Ivanhoe Mines were the top-performing TSX stocks, as they rallied by at least 9.9% each.

Shares of Canadian Imperial Bank of Commerce (TSX:CM) were also among the top performers, as they surged more than 5% to $53.36 per share. This renewed buying in CM stock came after the Toronto-headquartered lender announced its better-than-expected quarterly earnings.

In the quarter ended in October 2023, Canadian Imperial Bank’s revenue rose 8.5% YoY (year over year) to $5.8 billion but missed analysts’ estimates by a narrow margin. Nonetheless, its adjusted quarterly earnings jumped around 13% from a year ago to $1.57 per share, beating Street analysts’ expectations of $1.53 per share with the help of robust performance of its Canadian banking and capital markets operations. After this rally, CM stock is now up 2.4% year to date.

In contrast, BRP (TSX:DOO) became the worst-performing TSX stock yesterday after tanking by 11.8% to $83.80 per share due mainly to its dismal third-quarter revenue and earnings. Weaker shipment volume, along with lower personal watercraft and three-wheel vehicle deliveries, drove its revenue down by 8.9% YoY last quarter. These negative factors and higher costs due to inflationary pressures also caused the Valcourt-based power sports vehicle maker’s adjusted quarterly earnings to slip by 15.9% from a year ago, hurting investors’ sentiments. Year to date, DOO stock is now down 18.8%.

Canfor, Osisko Mining, and Interfor were also among the bottom performers on the Toronto Stock Exchange on the final day of November, as they dived by at least 5.6% each.

According to the exchange’s daily volume data, Manulife Financial, MEG Energy, Canadian Natural Resources, Suncor Energy, and Cenovus Energy were the five most active stocks.

TSX today

Metals prices were trading on a slightly positive note early Friday morning, which could lift TSX mining stocks at the open today. Besides the domestic labour market numbers, Canadian investors may also want to closely monitor the important manufacturing data from the United States this morning.

Later during the day, the Federal Reserve chair Jerome Powell will participate in a discussion at a Fireside Chat at Spelman College in Atlanta. His comments about the economy and monetary policy during the event could make TSX stocks volatile.

As the Canadian banking sector earnings season continues, Bank of Montréal and National Bank of Canada will announce their latest quarterly results on December 1.

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 Brp, Canadian Natural Resources, and International Petroleum. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Bank Stocks

TIMER SAYING TIME FOR ACTION
Bank Stocks

3 Reasons to Buy TD Bank Stock Like There’s No Tomorrow

Looking for a great bank stock to add to your portfolio? Here are three reasons why TD (TSX:TD) may be…

Read more »

Stocks for Beginners

Value Investors: Are You Buying and Holding Forever? Think Again

Value stocks are great, but if you don't have a goal in mind that stock can quickly turn from value…

Read more »

question marks written reminders tickets
Bank Stocks

Is Bank of America Stock a Good Buy Right Now?

Down 40% from all-time highs, Bank of America stock is very cheap and may outpace the broader markets this year.

Read more »

Bad apple with good apples
Bank Stocks

A U.S. Bank Stock Just Tanked: Is Canada Next?

A U.S. bank stock just plunged from downgrades, so how are Canadian bank stocks faring, and could they be next…

Read more »

Man holding magnifying glass over a document
Bank Stocks

Bank Stocks Are a Deep Value Today: 2 Top Choices to Watch

TD Bank (TSX:TD) and another stock are intriguing bank stocks with deep value propositions for long-term investors.

Read more »

protect, safe, trust
Dividend Stocks

Want Super-Safe Dividend Income in 2024? Invest in the Following 2 Ultra-High-Yield Stocks

High-return investments are usually high risk but two generous dividend payers are exceptions if you want super-safe dividend income in…

Read more »

Man data analyze
Bank Stocks

Is it Now Too Late to Buy Bank of Montreal Stock?

Bank of Montreal is up 20% from the 2023 low. Are more gains on the way?

Read more »

woman analyze data
Bank Stocks

RRSP Investors: Is Royal Bank of Canada Stock a Buy Now?

Royal Bank is up 20% from the 2023 low. Are more gains on the way?

Read more »