TSX Today: What to Watch for in Stocks on Thursday, December 21

Important economic data from the United States 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 December 21, 2023 9:00 am EST

The Canadian stock market witnessed a sharp pullback on Wednesday after rallying in the previous two sessions as stronger-than-expected U.S. consumer confidence and existing home sales numbers sparked speculation about the Fed’s future monetary policy moves. This factor, along with a downward reversal in crude oil, natural gas, and gold prices, drove the S&P/TSX Composite Index down by 239 points, or 1.1%, to 20,601 — erasing a large portion of the gains it saw in the previous two sessions.

While all main sectors on the TSX ended the day in the red territory, hefty declines in mining, utility, real estate, and technology shares led the market pullback.

Top TSX Composite movers and active stocks

Lithium Americas, Cargojet, Lithium Americas (Argentina), and Endeavour Silver were the worst-performing TSX stocks yesterday, as they plunged by more than 5% each.

On the flip side, shares of Aritzia and Parex Resources gained at least 2.3% each, making them the day’s top performers on the Toronto Stock Exchange.

Shares of Advantage Energy (TSX: AAV) also seemingly defied the bear market gravity by rising 2% to $8.63 per share. These gains in AAV stock came after Canada Growth Fund (CGF) announced a strategic partnership with Entropy, a subsidiary of Advantage Energy that focuses on carbon capture and storage technology.

This partnership includes a $200 million investment by CGF and a commitment to purchase up to one million tonnes of carbon credits annually from Entropy. The collaboration is expected to enhance the Canadian carbon market and promote the global development of carbon-capture technology. Despite rallying by nearly 6% this week so far, Advantage Energy stock still trades with 9% year-to-date losses.

According to the exchange’s daily trade volume data, TC Energy, Canadian Natural Resources, Canadian Imperial Bank of Commerce, Athabasca Oil, and Cenovus Energy were the five most active stocks in the last session.

TSX today

Metals prices were trading on a firm note early Thursday morning, which could lift TSX mining stocks at the open today.

Besides the domestic monthly retail sales numbers, Canadian investors will closely monitor the latest quarterly gross domestic product, monthly manufacturing, and weekly jobless claims data from the United States this morning, which could give further direction to TSX stocks.