Upbeat corporate earnings, stronger-than-expected U.S. consumer confidence data, and a rebound in oil and gas prices helped Canadian equities edge higher on Tuesday, though investors stayed cautious ahead of upcoming central bank decisions. These factors pushed the S&P/TSX Composite Index up 134 points, or 0.5%, to a record close of 27,540.
Nearly all key market sectors ended the session in the green, but the market rally was mainly led by handsome gains in the shares of real estate, consumer staples, and commodity-linked companies.
Notably, U.S. consumer confidence ticked higher in July, with the Conference Board index rising to 97.2, driven by improved expectations around income and employment. However, the short-term outlook remained cautious, as recession signals persisted with expectations still below the 80 threshold for a sixth straight month.
Top TSX Composite movers and active stocks
Celestica (TSX:CLS) jumped by 17% to $278.36 per share, making it the top-performing TSX stock for the day. This sharp rally in CLS stock came after the Toronto-based company crushed second-quarter earnings expectations.
Last quarter, Celestica’s revenue surged 21% year over year, while adjusted earnings rose 54% — both topping the high end of its own guidance with the help of stronger-than-expected demand in its communications segment. The company also boosted its full-year revenue and earnings outlook, now forecasting US$11.55 billion in revenue and US$5.50 per share in adjusted earnings. On a year-to-date basis, CLS stock is now up 110%.
Shares of BRP, Colliers International, and New Gold were also among the top gainers on the Toronto Stock Exchange, with each rising by at least 4.4%.
In contrast, Air Canada (TSX:AC) stock tanked by nearly 12% to $19.34 per share after its second-quarter profits and free cash flow sharply fell year over year due to higher costs and lower margins. Despite the airline firm reaffirming its 2025 outlook, the market reacted negatively, extending the stock’s year-to-date decline to over 13%.
Energy Fuels, NFI Group, and Lightspeed Commerce dived by at least 3.3% each, making them among the day’s worst-performing TSX stocks.
Based on their daily trade volume, Air Canada, Cenovus Energy, Royal Bank of Canada, TD Bank, and Suncor Energy were the five most active stocks on the exchange.
TSX today
Oil and metal prices were mostly mixed early Wednesday, pointing to a muted start for the resource-heavy TSX today.
In addition to the U.S. non-farm employment and gross domestic product (GDP) growth numbers this morning, both the Federal Reserve and Bank of Canada (BoC) are set to deliver closely watched policy decisions later today, which could significantly influence market direction.
With both central banks expected to hold rates steady, investors will focus on any changes in tone or forward guidance, especially around inflation risks and the potential for cuts later this year.
As the ongoing corporate earnings season heats up, several TSX-listed companies, including Canadian Pacific Kansas City, Kinross Gold, Bausch Health, Badger Infrastructure, GFL Environmental, CGI, Capital Power, and Freehold Royalties, will release their latest quarterly earnings reports today.
Market movers on the TSX today
