Despite sharp declines in commodity prices, Canadian stocks started the second week of July on a positive note as recently released higher-than-expected U.S. unemployment rate data raised hopes among investors that the Federal Reserve will soon cut interest rates and stimulate the economy. The S&P/TSX Composite Index climbed 67 points, or 0.3%, on Monday to settle at 22,126.
While weakness in metals prices drove the shares of mining companies lower, solid gains in other key sectors like real estate, healthcare, and consumer cyclicals drove the main TSX index higher.
Top TSX Composite movers and active stocks
Lundin Gold (TSX:LUG) inched up by 5.3% to $21.91 per share, making it the top-performing TSX stock for the day. This rally came a day after the National Bank upgraded its ratings on LUG stock from “sector perform” to “outperform,” boosting investors’ confidence.
In an unrelated development, after the market closing bell on Monday, Lundin Gold told investors that it produced 133,062 ounces of gold in the second quarter at its Fruta del Norte mine with the help of higher grades, improved recoveries, and increased throughput. The Vancouver-based gold miner also highlighted that it remains on track to meet its 2024 production guidance of 450,000 to 500,000 ounces. LUG stock has now risen 32.5% so far this year and offers a 2.5% annualized dividend yield.
Brookfield Business Partners, NovaGold Resources, and NorthWest Healthcare Properties REIT were also among the day’s top performers on the Toronto Stock Exchange, rising at least 4.3% each.
On the flip side, First Quantum Minerals and Teck Resources slid by at least 3.2% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume, TD Bank, Power Corporation of Canada, Canadian Natural Resources, Manulife Financial, and Scotiabank were the five most active stocks on the exchange.
TSX today
Precious metals prices were slightly bullish early Tuesday morning. In contrast, West Texas Intermediate crude oil futures prices continued to extend their losses. Given these mixed signals from the commodity markets, I expect the resource-heavy main TSX index to remain flat at the open today.
While no major domestic economic releases are due, Canadian investors will watch the first day of Fed chair Jerome Powell’s testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, which could give further direction to stocks.
Market movers on the TSX today
