The Canadian stock market ended its five-day winning streak on Wednesday as investors continued to closely watch mixed corporate earnings amid an intraday bounce back in treasury bond yields. Although the S&P/TSX Composite Index opened with over 200 points loss from its previous closing, a late recovery in commodity-linked stocks trimmed its losses to just 31 points as it settled at 22,259.
Even as technology and healthcare stocks witnessed heavy losses, moderate gains in most other market sectors, including consumer noncyclicals, utilities, and financials, helped the TSX benchmark limit its declines.
Top TSX Composite movers and active stocks
Shopify (TSX:SHOP) crashed by 18.5% to $86.16 per share, making it the worst-performing TSX stock for the day. Even as the Ottawa-based e-commerce giant announced its upbeat quarterly financial results, this selloff in SHOP stock came after its second-quarter revenue growth outlook seemingly disappointed investors.
In the quarter ended in March, Shopify’s revenue grew positively by 23.4%, helping it post solid adjusted quarterly net profit of US$256 million compared to just US$12 million a year ago. However, the company said it expects to deliver revenue growth of a high-teens percentage rate year over year in the second quarter, adjusting to low to mid-20s when factoring in the impact of the sale of its logistics businesses. On a year-to-date basis, SHOP stock is now down 16.5%.
Nexgen Energy, Bausch Health, and Aritzia were also among the bottom performers on the Toronto Stock Exchange as they plunged by more than 4% each.
On the flip side, Stella-Jones jumped by around 11% to $80.61 per share after announcing its significantly stronger-than-expected first-quarter earnings, mainly driven by organic growth in infrastructure products.
International Petroleum, Kinross Gold, and Altus Group also slipped by at least 4.3% each, making them among the day’s worst-performing TSX stocks.
Based on their daily trade volume, Cenovus Energy, Enbridge, Suncor Energy, Manulife Financial, and TD Bank were the five most active stocks on the exchange.
TSX today
Commodity prices, especially crude oil and silver, were bullish early Thursday morning, pointing to a slightly higher open for the resource-heavy main TSX index today.
Besides the weekly U.S. jobless claims data, investors may want to keep an eye on the Bank of Canada’s financial system survey and financial stability report this morning, which could give further direction to stocks.
On the corporate events side, several TSX-listed companies, including Sienna Senior Living, Jamieson Wellness, Interfor, Baytex Energy, Pembina Pipeline, Sun Life Financial, IAMGOLD, Wheaton Precious Metals, Definity Financial, ARC Resources, Chartwell Retirement Residences, Primo Water, iA Financial, Quebecor, Telus, InterRent REIT, MDA, Brookfield Corp, and Canadian Tire, are likely to announce their latest quarterly results on May 9.
Market movers on the TSX today
