TSX Today: What to Watch for in Stocks on Friday, May 24

The main TSX index seems on track to end the week in the red as it currently trades with 1.2% week-to-date declines.

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tsx today

Falling commodity prices and higher treasury bond yields continued to drive Canadian equities lower for the third consecutive session on Thursday. After stronger-than-expected U.S. manufacturing and services numbers also hurt near-term rate cut hopes, the S&P/TSX Composite Index dived by 146 points, or 0.7%, yesterday to settle at 22,201.

While most key TSX sectors ended the session in the red territory, the market selloff was mainly triggered by big intraday losses in shares of metal mining, utility, and consumer cyclical companies.

Top TSX Composite movers and active stocks

Bombardier, First Quantum Minerals, Orla Mining, and BlackBerry were the worst-performing TSX stocks for the day as they plunged by at least 4.6% each.

Shares of Toronto-Dominion Bank (TSX:TD) slipped by 1.6% to $75.58 per share despite posting better-than-expected quarterly revenues and earnings. In the second quarter of its fiscal year 2024 (ended in April), the bank’s revenue rose 10.2% year over year to $13.8 billion with the help of the strong performance of its Canadian personal and commercial banking segment.

TD Bank’s adjusted quarterly earnings rose 5.2% from a year ago in the April quarter to $2.04 per share, exceeding Street analysts’ expectation of $1.85 per share. However, the lender announced a provision of $615 million to address the ongoing anti-money laundering investigations against it in the United States. TD stock is now down 11.7% on a year-to-date basis and offers a 5.3% annualized dividend yield.

On the flip side, Celestica and Alimentation Couche-Tard rose at least 2.3% each, making them the day’s top performers on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Suncor Energy, Cenovus Energy, Manulife Financial, and Toronto-Dominion Bank were the five most active stocks on the exchange.

TSX today

Crude oil prices extended their decline for the fifth consecutive session on Friday, while metals prices experienced a slight recovery in early morning trading. Given these mixed signals, I expect the commodity-heavy main TSX index to remain flat at the open today.

Although no major economic releases from the United States are due, Canadian investors may want to keep an eye on the latest domestic retail sales numbers this morning.

Overall, TSX stocks may remain volatile as investors await several important economic data scheduled to be released next week, including the U.S. consumer confidence, quarterly growth in gross domestic product, and personal consumption expenditure.

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 has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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