TSX Today: What to Watch for in Stocks on Wednesday, October 29

With twin rate decisions due today, the TSX could see heightened volatility as traders assess the policy outlook.

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Key Points
  • TSX Composite rose 0.5% on improved U.S. consumer confidence and rate cut expectations.
  • Cameco soared 23% due to a major nuclear energy partnership with U.S. government.
  • BoC and Fed rate decisions and several key earnings reports are in focus today.

After starting the week on a bearish note, Canadian stocks staged a recovery on Tuesday as slightly better-than-expected U.S. consumer confidence figures, prospects of improving U.S.-China trade relations, and rate cut expectations from the Bank of Canada (BoC) and the Federal Reserve helped lift market sentiment. The S&P/TSX Composite Index advanced by 144 points, or 0.5%, to settle at 30,420 — not far from its all-time high.

On the one hand, shares of utilities, consumer staples, and real estate companies witnessed weakness, as investors rotated out of defensive sectors in anticipation of a more supportive interest rate environment. On the other hand, gains in technology, mining, and financial stocks more than offset the drag, driving the benchmark index higher.

tsx today

Top TSX Composite movers and active stocks

Cameco (TSX: CCO) rallied nearly 23% to $148.98 per share, making it the top-performing TSX stock for the day. This rally in CCO stock came after the Saskatoon-based uranium company and Brookfield Asset Management entered a landmark partnership with the U.S. Department of Commerce to accelerate the deployment of Westinghouse nuclear reactors.

The agreement outlined plans for at least US$80 billion in new U.S.-based nuclear projects, aiming to power data centres and support artificial intelligence (AI) growth with clean energy. Cameco highlighted that this collaboration would strengthen nuclear supply chains and boost long-term fuel demand, which could unlock revenue potential for Cameco and its Westinghouse stake. On a year-to-date basis, CCO stock is now up 102%.

NexGen Energy, Denison Mines, and Celestica were also among the top gainers on the Toronto Stock Exchange, with each climbing by at least 7.3%.

In contrast, Vermilion Energy, FirstService, Methanex, and Constellation Software slid by at least 2.4% each, making them the day’s worst-performing TSX stocks.

Based on their daily trade volume, Cenovus Energy, TD Bank, Scotiabank, Royal Bank of Canada, and Denison Mines were the five most active stocks on the exchange.

TSX today

Metal prices across the board trended higher in early trading on Wednesday, pointing to a higher opening for TSX mining stocks today.

The BoC will announce its latest interest rate decision later this morning, with Bay Street widely expecting the central bank to cut rates by 25 basis points amid signs of cooling inflation and moderating economic growth. In the afternoon, focus will shift to the Fed’s latest rate decision and policy statement, where officials are also expected to cut rates by 25 basis points.

Together, these back-to-back decisions and policy statements could provide clarity on the future path of monetary policy on both sides of the border and set the tone for TSX stocks heading into November.

As the third-quarter earnings season also gains steam, several TSX-listed companies, including Methanex, Headwater Exploration, Bausch Health, Canadian Pacific Kansas City, Agnico Eagle Mines, Primaris REIT, Alamos Gold, Athabasca Oil, Cogeco Communications, Allied Properties REIT, Aecon, Aris Mining, Ivanhoe Mines, Tamarack Valley Energy, Capital Power, and Gildan Activewear will release their latest quarterly earnings reports.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Celestica and Toronto-Dominion Bank. The Motley Fool recommends Bank Of Nova Scotia, Cameco, Canadian Pacific Kansas City, Capital Power, Celestica, Cogeco Communications, Constellation Software, FirstService, Methanex, Primaris Real Estate Investment Trust, and Vermilion Energy. The Motley Fool has a disclosure policy.

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