Surging commodity prices and rate cut hopes lifted the Canadian stock market on Wednesday, even though mixed U.S. consumer inflation data dimmed expectations for a major reduction in rates in the near term. The S&P/TSX Composite Index inched up by 208 points, or 0.9%, to 23,211, closing its highest level so far in September.
While all key sectors ended the session with gains, the market optimism was mainly driven by a strong rally in consumer cyclical, technology, and healthcare stocks.
In August 2024, the U.S. Consumer Price Index (CPI) ticked up by 0.2% on a seasonally adjusted basis, matching the increase seen in July. The core CPI, excluding food and energy, registered a 0.3% increase last month, with a rise in shelter, airline fares, motor vehicle insurance, education, and apparel.
Top TSX Composite movers and active stocks
Dollarama (TSX:DOL) was the top-performing TSX stock for the day, as it jumped by 8.2% to $135.53 per share after its latest quarterly earnings report came out. In the quarter ended in July 2024, the Mont-Royal-based value retailer’s total revenue rose 7.4% from a year ago to $1.6 billion, supported by new store openings and a 4.7% growth in comparable store sales.
In addition, lower logistics costs and efficient operations helped Dollarama post a strong 18.6% year-over-year increase in its adjusted quarterly earnings to $1.02 per share, exceeding Street analysts’ expectations. On a year-to-date basis, Dollarama stock is now up 42%.
First Majestic Silver, Energy Fuels, and First Quantum Minerals were also among the session’s top performers on the Toronto Stock Exchange, with each climbing by at least 6.6%.
In contrast, Parex Resources, International Petroleum, and Mattr slipped by at least 2% each, making them the day’s worst-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Enbridge, Suncor Energy, Pembina Pipeline, and Manulife Financial were the five most active stocks on the exchange.
TSX today
Commodity prices across the board were bullish early Thursday morning. This could extend gains in the TSX index into today’s session as rising oil and metal prices are likely to continue supporting the mining and energy stocks.
Although no major domestic economic releases are due, Canadian investors will closely monitor the important monthly wholesale inflation and weekly jobless claims data from the United States this morning, which could guide the broader market sentiments.
On the corporate events side, the TSX-listed Empire Company will announce its latest quarterly results on September 12.
Market movers on the TSX today
