Canadian equities rallied for a second consecutive session on Wednesday as solid tech earnings, firm metals prices, and rising hopes of more rate cuts boosted investor confidence. The S&P/TSX Composite Index climbed by 351 points, or 1.3%, to settle at 27,921 — a fresh record high and a strong signal of renewed market momentum.
Despite weakness in healthcare and industrial stocks, strong gains in other key sectors such as technology, mining, and financials powered the TSX to its second straight day of record-setting gains.
Top TSX Composite movers and active stocks
The Canadian e-commerce giant Shopify (TSX:SHOP) zoomed up by 21.5% to $212.82 per share, making it the top-performing TSX stock for the day. These solid gains in SHOP stock came after the company posted another stellar quarter, with its revenue climbing 31% year over year to US$2.68 billion and gross profit jumping 25% to US$1.3 billion.
Similarly, Shopify’s free cash flow rose to US$422 million, maintaining a strong 16% margin for the eighth straight quarter. The company saw accelerating gross merchandise volume (GMV) and revenue growth across North America, Europe, and Asia-Pacific, with Europe leading at 42% GMV growth. SHOP stock popped as investors cheered its consistent profitability and strong international momentum.
SSR Mining, Premium Brands, and Orla Mining also inched up by at least 6% each, making them some of the Toronto Stock Exchange’s top gainers.
On the flip side, shares of Thomson Reuters (TSX:TRI) dived by over 10% to $247.36 apiece after posting a sharp year-over-year decline in earnings. While its revenue rose 3%, the company’s diluted earnings plunged by 63% to US$0.69 per share. However, it is important to note that Thomson Reuters’s prior-year period financial figures had included a sizable US$468 million non-cash tax benefit and gains from its investment in the London Stock Exchange, which were absent this quarter. Despite strong organic revenue growth of 7%, the steep drop in reported earnings seemingly spooked investors, triggering the selloff.
Kinaxis and Finning International also slipped by at least 5.7% each, making them among the day’s worst-performing TSX stocks.
Based on their daily trade volume, Suncor Energy, Manulife Financial, Canadian Natural Resources, Baytex Energy, and Enbridge were the five most active stocks on the exchange.
TSX today
Commodity prices across the board trended higher in early Thursday trading, suggesting a mildly positive open for the TSX today.
Besides the domestic purchasing managers index data this morning, Canadian investors will continue to monitor a wave of corporate earnings today, which could add to market volatility and set the tone for the rest of the trading session.
As the second-quarter earnings season heats up further, several large TSX-listed companies, including CES Energy Solutions, Sun Life Financial, Wheaton Precious Metals, Power Corporation of Canada, Saputo, Pembina Pipeline, SmartCentres REIT, IAMGOLD, Open Text, Denison Mines, Keyera, MDA Space, BCE, Stella-Jones, Atkinsrealis Group, Canadian Tire, Canadian Natural Resources, ATS, Restaurant Brands International, Brookfield, and Maple Leaf Foods, will release their latest quarterly earnings reports today.
Market movers on the TSX today
