TSX Today: What to Watch for in Stocks on Thursday, December 5

More Canadian bank earnings will remain in focus as mixed commodity prices highlight the potential for further choppiness on the TSX today.

Canadian stocks remained muted on Wednesday as sharp declines in commodity prices hurt investor sentiment, even as weaker-than-expected U.S. employment data raised the possibility that the Federal Reserve will continue to lower interest rates in the coming months. After climbing to a fresh all-time high of 25,744 in intraday trading, the S&P/TSX Composite Index gave up most of its gains later during the session but still closed with a modest five-point increase at 25,641.

Despite continued buying in technology and industrial stocks, heavy losses in some key sectors, like consumer cyclicals and energy, prevented the TSX from building on its intraday gains.

tsx today

Top TSX Composite movers and active stocks

Spin Master, MDA Space, and K92 Mining inched up by at least 3.5% each, making them the top-performing TSX stocks for the day.

Similarly, Descartes Systems (TSX: DSG) rose 3.4% to $168.66 per share after announcing its upbeat quarterly financial results. For the quarter ended in October 2024, the Waterloo-based software firm posted a 16.6% year-over-year increase in total revenue to US$168.8 million due to strategic acquisitions and continued strength in its services segment.

More importantly, higher sales amid strong demand for its software solutions and improved margins helped Descartes deliver a 35.5% jump in its adjusted earnings to US$0.42 per share, exceeding analysts’ expectations. On a year-to-date basis, DSG stock now trades with solid 52% gains.

In contrast, Dollarama stock dived by over 5% to $140.56 per share after the discount retailer told investors that slightly weaker average transaction size, higher logistics costs, and softer demand for seasonal items affected its profits last quarter.

Baytex Energy, Canadian Western Bank, and National Bank of Canada were also among the session’s bottom performers on the Toronto Stock Exchange, with each sliding by at least 3.8%.

Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Baytex Energy, Enbridge, and Manulife Financial were the five most active stocks on the exchange.

TSX today

West Texas Intermediate crude oil futures prices were bearish early Thursday morning, while precious metals prices showed strength. These mixed signals suggest another potentially volatile session for the resource-heavy TSX index today.

Besides domestic purchasing managers index data for November, Canadian investors will also keep an eye on the weekly U.S. jobless claims this morning.

As Canadian banking sector earnings season gains steam, Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, and Bank of Montreal will announce their latest quarterly results on December 5.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bank Of Montreal, Canadian Natural Resources, Dollarama, Enbridge, and Toronto-Dominion Bank. The Motley Fool recommends Canadian Natural Resources, Descartes Systems Group, Enbridge, and Spin Master. The Motley Fool has a disclosure policy.

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