TSX Today: What to Watch for in Stocks on Friday, September 26

The TSX extended its pullback Thursday, with investors eyeing the U.S. PCE inflation gauge and Canada’s GDP figures today.

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Key Points
  • TSX fell for a third day as strong second-quarter U.S. GDP growth raised doubts about more Fed rate cuts.
  • Big movers: Aya plunged after a short‑seller report, Constellation dropped on its president’s resignation, while Brookfield Business Partners and BlackBerry jumped on corporate news.
  • Investors will watch today’s U.S. inflation and Canada GDP data as they could shift expectations for future interest‑rate moves.

Canadian stocks fell for the third straight session on Thursday as stronger-than-expected U.S. GDP (gross domestic product) growth for the second quarter raised expectations that the Federal Reserve may take a more measured approach to rate cuts. As a result, the S&P/TSX Composite Index slipped by another 25 points to settle at 29,732.

Even as a rally in commodity prices across the board lifted mining and energy stocks, big losses in other key sectors like healthcare and technology weighed on the broader TSX.

tsx today

Top TSX Composite movers and active stocks

Aya Gold & Silver (TSX: AYA) plunged by more than 15% to $12.93 per share, making it the worst-performing TSX stock for the day. This selloff in AYA stock came after the company forcefully rejected a short-seller report that alleged inaccuracies in its management practices, operations, and resource base.

Aya called the claims made by Blue Orca Capital “misleading and intentionally false,” stressing that its silver production has consistently reconciled with resource estimates and that its reserves have been independently verified. Still, the sharp drop in AYA stock reflects investor unease, with markets reacting more to the uncertainty raised by the short report than to the company’s rebuttal.

Constellation Software dropped 6% after its longtime president Mark Leonard resigned due to health reasons, with chief operating officer Mark Miller named his successor.

Curaleaf Holdings and Ivanhoe Mines were also among the bottom performers on the Toronto Stock Exchange, as they slid by at least 4% each.

On the brighter side, shares of Brookfield Business Partners (TSX: BBU.UN) surged by 12.5% after announcing plans to merge Brookfield Business Partners Limited Partnership and Brookfield Business Corporation into a single Canadian firm, BBU Inc. With this restructuring move, the company plans to broaden its investor base, improve liquidity, and eliminate partnership tax filings.

BlackBerry (TSX: BB) was also among the top-performing TSX stocks as its shares climbed over 9% to $6.47 apiece. This rally in BB stock came after the Waterloo-based enterprise software firm posted far better-than-expected August quarter financial results, with its adjusted net profit of US$24.2 million crushing Street analysts’ expectations of US$8.5 million. BlackBerry’s QNX posted a solid 15% year-over-year revenue growth, while its Secure Communications division also exceeded expectations on both revenue and margins — triggering the rally in its stock.

Based on their daily trade volume, Cenovus Energy, Canadian Natural Resources, Aya Gold & Silver, BlackBerry, and Suncor Energy were the five most active stocks on the exchange.

TSX today

Commodity prices were largely mixed in early trading on Friday, pointing to a flat opening for the TSX index today.

In addition to Canada’s GDP and budget balance data, TSX investors will closely monitor the important U.S. personal consumption expenditure (PCE) print this morning, which is considered a key inflation gauge closely watched by the Fed. Any surprise in the PCE data could influence expectations around the timing of future rate cuts and add volatility to interest-sensitive sectors.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in BlackBerry and Canadian Natural Resources. The Motley Fool recommends Canadian Natural Resources and Constellation Software. The Motley Fool has a disclosure policy.

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