TSX Today: What to Watch for in Stocks on Wednesday, October 2

The U.S. non-farm employment data and new developments related to the ongoing geopolitical tensions in the Middle East will remain on TSX investors’ radar today.

The Canadian stock market started the new month on a slightly positive note as the release of largely better-than-expected U.S. job openings and manufacturing data gave further fuel to the ongoing rally. After ending the third quarter with solid 9.7% gains, the S&P/TSX Composite Index climbed by 34 points on Tuesday to settle at 24,034, its all-time high on a closing basis.

Despite an intraday weakness in sectors like technology and industrials, solid gains in mining and energy stocks helped lift the TSX benchmark.

tsx today

Top TSX Composite movers and active stocks

Canadian Natural Resources, Baytex Energy, Imperial Oil, and Veren were the top-performing TSX stocks for the day, with each climbing by at least 4.2%.

Shares of MEG Energy (TSX: MEG) also rose 3.8% to $26.37 per share, extending its year-to-date gains to 11.4%. This rally in MEG stock came after the Calgary-headquartered energy firm announced that it has successfully achieved its US$600 million debt reduction target and will now shift to returning 100% of its free cash flow to shareholders.

In a statement, MEG highlighted how this milestone marks the completion of its multi-year capital allocation strategy. Starting in October 2024, the company plans to expand share buybacks and introduce a quarterly base dividend of $0.10 per share, with the first payment on October 15, 2024. This positive development was welcomed by investors, pushing MEG stock higher.

On the flip side, BlackBerry, Tilray, Aritzia, and Celestica dived by at least 3.1% each, making them the day’s worst performers on the Toronto Stock Exchange.

According to the exchange’s daily trade volume data, TD Bank, Canadian Natural Resources, Bank of Nova Scotia, Power Corporation of Canada, and TC Energy stood out as the five most active stocks.

TSX today

Crude oil, natural gas, and copper prices continued to extend their upward momentum early Wednesday morning, suggesting that the main TSX index might trade on a firm note today, especially benefiting from gains in resource-heavy sectors.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the monthly non-farm employment and weekly crude oil stockpile data from the United States this morning. Besides this, escalating conflict in the Middle East will remain on investors’ radar, as it could impact global oil supply and further drive commodity prices higher.

On the corporate events side, the TSX-listed NovaGold Resources is likely to announce its latest quarterly financial results after the market closing bell on October 2.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Aritzia, BlackBerry, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Bank Of Nova Scotia, Canadian Natural Resources, and Tilray Brands. The Motley Fool has a disclosure policy.

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