TSX Today: What to Watch for in Stocks on Wednesday, August 20

With weak commodity prices, the TSX could see cautious trading at the open today as investors await the FOMC meeting minutes.

The Canadian stock market rollercoaster continued on Tuesday as investors reacted to fresh consumer inflation data and ongoing labor disruptions. The S&P/TSX Composite Index slipped by 99 points, or 0.4%, to settle at 27,824 — marking its lowest close in a week.

As Canada’s latest consumer price index (CPI) showed a 1.7% rise in July from a year earlier, down from 1.9% in June, industrial, consumer staples, and real estate stocks saw renewed buying. However, weakness in healthcare and mining stocks still weighed on the TSX index, as falling metals prices and rate-cut uncertainty kept investors cautious.

tsx today

Top TSX Composite movers and active stocks

Energy Fuels, Aya Gold & Silver, NexGen Energy, and Orla Mining dived by over 6% each, making them the worst-performing TSX stocks for the day.

In contrast, TFI International, TerraVest Industries, Jamieson Wellness, and CCL Industries were the day’s top-performing TSX stocks, with each climbing by at least 2.3%.

Shares of Loblaw Companies (TSX: L) also inched up by nearly 2%, making it one of the top gainers on the Toronto Stock Exchange. This rally followed the Canadian retail giant’s completion of its four-for-one stock split, which officially took effect at the market open on August 19.

The Loblaw-split move, first announced in July, gave shareholders three additional common shares for each one held, without diluting equity. The company’s management expects the split to make shares more accessible to retail investors while also boosting liquidity. With Loblaw stock now trading at $58.76 per share on a post-split basis, investors appear encouraged by the move, seeing it as a catalyst for broader participation and stronger trading activity.

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

TSX today

Commodity prices across the board were bearish in early Wednesday trading, with crude oil, natural gas, and silver all posting modest declines. The weakness in commodities could put fresh pressure on resource-linked sectors at the open today, weighing on the broader TSX.

While no major economic releases are due this morning, Canadian investors may want to keep an eye on the latest FOMC (Federal Open Market Committee) meeting minutes due later today. This could provide more clarity on the U.S. Federal Reserve’s stance toward future interest rate cuts and drive near-term market sentiment.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Air Canada, Canadian Natural Resources, and Enbridge. The Motley Fool recommends Air Canada, CCL Industries, Canadian Natural Resources, Enbridge, TFI International, and TerraVest Industries. The Motley Fool has a disclosure policy.

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