Strengthening crude oil and precious metals prices, along with much cooler-than-expected U.S. consumer inflation data, helped Canadian stocks post solid gains for a second consecutive session. As easing consumer inflation raised hopes that the Federal Reserve will soon consider cutting interest rates, the S&P/TSX Composite Index surged by 194 points, or 0.9%, on Thursday to settle at 22,544.
These advances led the TSX benchmark to not only close at its highest historical level but also to achieve an intraday record high of 22,575. In addition to a rally in energy and mining stocks, other key sectors like real estate and consumer cyclicals also registered strong gains during the session.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) for all urban consumers fell 0.1% in June 2024, following no change in May. Despite an increase in the shelter index, key contributors to the monthly CPI decline included a 3.8% drop in gasoline prices and a 2% fall in the overall energy index.
Top TSX Composite movers and active stocks
MTY Food Group (TSX: MTY) popped by over 11% to $47.45 per share, making it the top-performing TSX stock for the day. This strong rally in MTY stock came after the Saint-Laurent-based restaurant franchisor announced its better-than-expected quarterly earnings and revenue.
In the quarter ended in May 2024, MTY’s sales slipped 0.5% from a year ago to $303.7 million due to reduced recurring revenue streams linked to lower system sales amid inflationary pressures, but they exceeded Street analysts’ expectations of $294.6 million. The company’s adjusted quarterly earnings rose 2.4% year over year to $1.27 per share, beating analysts’ estimates of $1.09 per share. MTY stock is still down 16% on a year-to-date basis and has a 2.4% annualized dividend yield.
NovaGold Resources, Pan American Silver, and OceanaGold were also among the day’s top gainers on the Toronto Stock Exchange, climbing by at least 5.8% each.
On the flip side, CES Energy Solutions and Capstone Copper dived by at least 4% each, making them the session’s worst-performing TSX stocks.
According to the exchange’s daily trade volume data, Canadian Natural Resources, TD Bank, Cenovus Energy, TC Energy, and Enbridge stood out as the five most active stocks.
TSX today
West Texas Intermediate crude oil futures prices were bullish early Friday morning, pointing to a slightly higher open for TSX energy stocks today.
Although no major domestic economic releases are due, Canadian investors will closely monitor the important U.S. wholesale inflation data this morning, which could give investors more clarity about the Fed’s monetary policy stance in the coming months.
Market movers on the TSX today
