TSX Today: What to Watch for in Stocks on Friday, January 5

Weakness in metals prices could pressure the TSX index, especially 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 January 5, 2024 9:00 am EST

Following a two-day downturn, the Canadian equities market rebounded into positive territory on Thursday, fueled by ongoing investor speculation about potential interest rate cuts in 2024. Despite much stronger-than-expected labour market data from the United States hinting that the Fed might maintain higher interest rates for an extended period, the S&P/TSX Composite Index climbed 53 points, or 0.3%, to settle at 20,871.

Commodity-linked stocks trended downward amid the heightened volatility of metals and crude oil prices. Nonetheless, solid gains in key market sectors like technology, industrials, and financials drove the TSX benchmark upward.

Top TSX Composite movers and active stocks

Parkland, Nuvei, Bombardier, and SilverCrest Metals were the top-performing TSX stocks yesterday, as they inched up by at least 3% each.

Shares of Enghouse Systems (TSX: ENGH) rose 1.3% after announcing its intentions to acquire the Mediasite business from Sonic Foundry for about US$15.5 million in cash, including its Japanese and Dutch subsidiaries. The deal, which is supported by a majority of Sonic Foundry’s shareholders and subject to standard closing conditions, is likely to close within the first quarter of 2024. After rising by about 17% in the last three months, ENGH stock now trades at $34.52 per share.

Alimentation Couche-Tard (TSX: ATD) stock also advanced by 1.3% to $79.31 per share, a day after it announced the completion of its acquisition of some key European retail assets from TotalEnergies. The move aims to expand Couche-Tard’s presence into Germany, Belgium, Netherlands, and Luxembourg, with over 2,175 sites in total. After ending 2023 with 31% gains, ATD stock has now risen 1.6% in January so far.

In contrast, Seabridge Gold, Cenovus Energy, Superior Plus, and BlackBerry slipped by at least 2.9% each, making them the day’s bottom performers on the Toronto Stock Exchange.

Based on their daily trade volume, Toronto-Dominion Bank, TC Energy, Baytex Energy, Cenovus Energy, and Scotiabank were the five most heavily traded stocks on the exchange.

TSX today

Most commodity prices, except for crude oil, showed a bearish trend early Friday morning, which could pressure the resource-laden main TSX index at the open today.

In addition to the important manufacturing and more labour market data from the United States, Canadian investors will also keep a close watch on the domestic employment change, unemployment rate, and purchasing managers index numbers this morning, which could influence the short-term stock market trajectory.