TSX Today: What to Watch for in Stocks on Monday, January 6

TSX investors could react to the speculative report of Prime Minister Justin Trudeau’s expected resignation as political uncertainty may weigh on investor sentiment today.

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Strengthening crude oil prices and better-than-expected U.S. manufacturing data drove Canadian stocks higher for the third consecutive session on Friday as speculation about a resilient economy raised hopes of sustained economic growth in 2025. The S&P/TSX Composite Index climbed 176 points, or 0.7%, to close at 25,074, marking its highest level in weeks.

While all key sectors, except healthcare, closed in positive territory, the market rally was mainly driven by solid intraday gains in technology, real estate, and industrial stocks.

tsx today

Top TSX Composite movers and active stocks

Aritzia, Celestica, Nutrien, and Bird Construction were the top-performing TSX stocks for the day, with each inching up by at least 3.5%.

In contrast, Algoma Steel Group (TSX: ASTL) was the worst-performing TSX stock, diving by 7.5% to $12.93 per share. This selloff in ASTL stock came a day after the Canadian steel producer projected an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $55 million to $65 million for the December 2024 quarter, citing macroeconomic headwinds.

Algoma’s steel shipments for the quarter were expected to range between 545,000 and 550,000 tons. Despite the weak guidance for the last quarter, its management highlighted progress on the Electric Arc Furnace project, which is on track for first steel production by the end of the first quarter of 2025. Notably, ASTL stock has slipped 8.2% so far in January after ending 2024 with about a 6% increase.

BlackBerry, Torex Gold, and First Majestic Silver were also among the session’s bottom performers on the Toronto Stock Exchange as they slid by at least 2.4% each.

Based on their daily trade volume, TD Bank, Bank of Nova Scotia, Veren, Canadian Natural Resources, and Telus were the five most active stocks on the exchange.

TSX today

As the trading week kicks off on Monday, Canadian investors could react to the speculative report of Prime Minister Justin Trudeau’s expected resignation as liberal party leader before the national caucus meeting on Wednesday, which might bring political uncertainties to the forefront. In addition, mixed commodity prices could set the stage for a volatile trading session for the TSX index today.

While no major domestic economic releases are due this morning, TSX investors may want to keep an eye on the latest U.S. services data.

Market movers on the TSX today

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

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