TSX Today: What to Watch for in Stocks on Friday, August 29

Despite a volatile session, the TSX ended at a record high as traders today look to PCE data and corporate earnings for direction.

Key Points
  • The TSX closed at a record high with a tiny 2‑point gain amid mixed sector performance.
  • Tech and energy showed strength while EQB stock plunged over 11% after weak earnings.
  • Investors will watch U.S. PCE inflation data and today’s Laurentian Bank and BRP earnings for market direction.

Even with rising commodity prices and stronger-than-expected U.S. GDP (gross domestic product) data for the second quarter, the Canadian stock market remained volatile on Thursday as investors continued to assess fresh bank earnings and global economic signals. Despite climbing by nearly 100 points in intraday trading, the S&P/TSX Composite Index ended the session with a minor two-point increase at 28,435 — just enough to notch another record close.

While some technology and energy stocks showed strength, heavy losses in most other key sectors, including healthcare and industrials, limited the TSX index’s upside.

tsx today

Top TSX Composite movers and active stocks

Celestica, TransAlta, Cameco, and Enerflex climbed by at least 2.7% each, making them the day’s top-performing TSX stocks.

In contrast, shares of EQB (TSX: EQB) dived by 11.2% to $90.25 per share after the Toronto-based lender reported a steep drop in quarterly earnings. The financial firm’s adjusted net profit fell 32% year over year to $80.3 million, while its revenue also fell 5% with net interest margin compressing by 14 basis points.

Last quarter, EQB’s provision for credit losses jumped to $34 million due mainly to ongoing macroeconomic uncertainty and weakness in Canada’s housing market. Despite strong loan growth and a 17% dividend hike, its weaker profitability amid rising credit pressures disappointed investors. On a year-to-date basis, EQB stock is now down nearly 9%.

TD Bank, Ero Copper, and Dundee Precious Metals also plunged by at least 2.5% each, making them among the session’s bottom performers on the Toronto Stock Exchange.

Based on their daily trade volume, TD Bank, Canadian Natural Resources, Suncor Energy, Manulife Financial, and Canadian Imperial Bank of Commerce were the five most active stocks on the exchange.

TSX today

Commodity prices were largely mixed in early Friday morning trading, with copper edging higher while crude oil and precious metals slipped. The uneven moves suggest the resource-heavy TSX could see a muted open today.

In addition to the domestic GDP and budget balance data, Canadian investors may want to keep a close eye on the key U.S. personal consumption expenditure (PCE) price index this morning, as it is considered the Federal Reserve’s preferred inflation gauge.

On the corporate events side, the TSX-listed Laurentian Bank of Canada and BRP will announce their latest quarterly results today, which could drive stock-specific moves in the financial and consumer discretionary sectors.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Celestica, and Toronto-Dominion Bank. The Motley Fool recommends Brp, Cameco, Canadian Natural Resources, EQB, Enerflex, and Laurentian Bank Of Canada. The Motley Fool has a disclosure policy.

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