TSX Today: What to Watch for in Stocks on Friday, September 5

The TSX extended its winning streak to fresh highs, and today’s jobs data could decide if the record run continues.

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Key Points
  • The TSX closed at a record 28,916, up 165 points for its seventh straight daily gain as hopes for near‑term rate cuts lifted rate‑sensitive sectors.
  • Bird Construction jumped after announcing the Fraser River Pile & Dredge acquisition, and Descartes posted a record quarter.
  • Canada’s labour market report and U.S. payrolls will remain on TSX investors’ radar today.

Canadian stocks edged higher for the seventh consecutive day on Thursday as dismal U.S. jobs data renewed expectations that the Federal Reserve may further cut interest rates sooner than previously anticipated. The S&P/TSX Composite Index jumped by 165 points, or 0.6%, for the day to settle at 28,916 — the latest in a string of record highs, as investors grew more confident that rate relief could be on the horizon.

Despite continued weakness in some healthcare stocks, strong gains in rate-sensitive sectors like technology, real estate, and consumer discretionary propelled the TSX to another record close.

tsx today

Top TSX Composite movers and active stocks

Bird Construction (TSX: BDT) rallied by over 13% to $26.01 per share, making it the top-performing TSX stock for the day. This rally followed the Etobicoke-based company’s announcement that it will acquire Fraser River Pile & Dredge (FRPD) for about $82.3 million.

Notably, FRPD is Canada’s largest marine infrastructure, land foundation, and dredging player, and Bird expects the purchase to boost its adjusted earnings per share by nearly 7% on a full-year basis, lift margins via higher-margin self-perform work, and deepen its infrastructure vertical. With this, BDT stock has surged by 15% so far in September.

Shares of Descartes Systems (TSX: DSG) also jumped 7% after the logistics-software firm posted record July quarter financial results, with its total revenue rising 10% year over year with the help of a 14% increase in its services revenue. Investors cheered Descartes’s solid profitability and cash flow, with its operating cash soaring 82%, reflecting resilience despite global trade headwinds.

Methanex and Celestica were also among the day’s top gainers on the Toronto Stock Exchange, with each inching up by at least 4.7%.

Despite the broader market rally, Endeavour Silver, First Majestic Silver, NexGen Energy, and First Quantum Minerals slid by over 3% each, making them the session’s worst-performing TSX stocks.

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

TSX today

Commodity prices were largely flat in early Friday trading, pointing to a muted open for the resource-heavy main TSX index today.

Besides the domestic labour market data, Canadian investors will also keep a close eye on the U.S. average hourly earnings, non-farm payrolls, and unemployment rate figures this morning.

If job markets keep showing signs of slowing on both sides of the border, it could boost hopes for rate cuts and extend the TSX’s record-setting momentum.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Celestica, and Enbridge. The Motley Fool recommends Canadian Natural Resources, Descartes Systems Group, Enbridge, and Methanex. The Motley Fool has a disclosure policy.

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