TSX Today: What to Watch for in Stocks on Monday, February 3

Escalating U.S.-Canada trade tensions will remain on TSX investors’ radar today as they assess the potential impact of tariffs on key sectors.

A day after closing at a fresh all-time high, the Canadian stock market fell sharply on Friday as weaker-than-expected domestic economic data, mixed corporate earnings, and fears of U.S. tariffs sparked concerns. The S&P/TSX Composite Index plunged by 275 points, or 1.1%, for the day to settle at 25,533.

While all key sectors ended the session with losses, the market selloff was mainly led by big declines in energy, consumer cyclical, mining, and tech stocks. Despite this selloff, the TSX still ended the week in the green territory with a minor 0.3% gain, marking its third consecutive winning week.

tsx today

Top TSX Composite movers and active stocks

Imperial Oil (TSX: IMO) dived by 6.6% to $96.67 per share, making it the worst-performing TSX stock for the day. This selloff in IMO stock came after the Calgary-based energy firm’s fourth-quarter revenue missed Street analysts’ expectations.

In the quarter ended December 2024, Imperial Oil’s revenue slipped 3.8% year over year to $12.6 billion due mainly to lower refining margins and weaker market conditions in its downstream segment. Nevertheless, record production helped the company deliver adjusted quarterly earnings of $2.37 per share, exceeding analysts’ estimates of $2.12 per share. On a year-to-date basis, IMO stock is now up 9%.

Finning International, Algoma Steel, and Tilray were also among the bottom performers on the Toronto Stock Exchange, with each sliding at least 5.5%.

In contrast, Celestica, Brookfield Renewable, Algonquin Power & Utilities, and Boralex climbed by at least 3.2% each, making them the session’s top-performing TSX stocks.

Based on their daily trade volume, Enbridge, Canadian Natural Resources, Bank of Montreal, Denison Mines, and Cenovus Energy were the five most active stocks on the exchange.

TSX today

Silver and copper prices traded on a bearish note in early Monday trading, which could put pressure on TSX mining stocks at the open today.

On February 1, U.S. president Donald Trump announced fresh tariffs on Canadian imports, including a 25% levy on most goods and a 10% tariff on energy exports. In response, Canada retaliated with 25% tariffs on nearly $155 billion worth of U.S. goods, escalating trade tensions between the two nations. This ongoing trade dispute could weigh on TSX investor sentiment today, especially in sectors reliant on cross-border trade, like manufacturing and energy.

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

On the corporate events front, the TMX Group is expected to announce its quarterly earnings after the market closing bell today. Analysts expect the Toronto-based company to post earnings of $0.43 per share for the fourth quarter with revenue of $374.8 million.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bank Of Montreal, Canadian Natural Resources, Celestica, and Enbridge. The Motley Fool recommends Brookfield Renewable Partners, Canadian Natural Resources, Enbridge, TMX Group, and Tilray Brands. The Motley Fool has a disclosure policy.

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