TSX Today: What to Watch for in Stocks on Thursday, February 26

Renewed tech buying and strong economic signals pushed the TSX above 34,000 for the first time, with today’s focus on oil’s pullback, more earnings reports, and U.S. jobless claims.

Key Points
  • TSX closed above 34,000 for the first time, rising 0.5% to 34,172 on renewed AI‑tech buying and upbeat economic and earnings signals.
  • Tech, financials, and industrials led the advance while utilities and staples lagged, with Thomson Reuters and National Bank among the top gainers and Loblaw notably down.
  • Investors will watch oil’s near‑2% pullback, U.S. jobless claims, and a heavy TSX earnings slate for direction today.

Canadian stocks continued to climb for a second consecutive day on Wednesday as renewed buying in artificial intelligence (AI)-linked tech stocks and prospects of sustained economic expansion fueled investor optimism. The S&P/TSX Composite Index advanced by 157 points, or 0.5%, on the day to close at 34,172, marking its first close above the key psychological level of 34,000.

On the one hand, shares of utility and consumer staple companies lagged behind as investors rotated into more defensive plays. On the other hand, other key sectors like technology, financials, and industrials led the charge, benefiting from recently released positive U.S. economic data and strong corporate earnings.

tsx today

Top TSX Composite movers and active stocks

Thomson Reuters, Exchange Income, National Bank of Canada, and Torex Gold Resources were the top-performing TSX stocks for the day, with each climbing by at least 5.3%.

In contrast, Loblaw Companies (TSX: L) fell by 5.5% to $63.80 per share, making it the day’s worst-performing TSX stock. This selloff in the shares of Brampton-headquartered retail firm came after its seemingly positive fourth-quarter results showing a 3.5% revenue increase and a 10.9% jump in adjusted diluted net earnings per share.

Despite strong e-commerce growth of nearly 20% and gains in both food and drug retail segments, investors appeared to react cautiously to Loblaw’s efforts to streamline operations with the sale of PC Financial and heavy investments in automation and store expansion. The dip in Loblaw stock suggested investors may be factoring in short-term costs associated with these transitions, despite the company’s overall positive trajectory and an increase in its earnings.

Element Fleet Management, Parex Resources, and Lundin Mining were also among the session’s worst performers on the Toronto Stock Exchange, with each diving by at least 3.8%.

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

TSX today

West Texas Intermediate crude oil futures prices plunged by nearly 2% in early morning trade on Thursday, which could pressure TSX energy stocks at the open today.

While no major domestic economic releases are due, Canadian investors will keep an eye on the latest U.S. jobless claims data this morning.

On the corporate events front, many TSX-listed companies, including Chartwell Retirement Residences, Pembina Pipeline, Jamieson Wellness, Curaleaf, Enerflex, ATCO, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Canadian Utilities, Gildan Activewear, Quebecor, and TD Bank, will announce their latest quarterly results today. These reports will act as the primary driver of market movement, with investors carefully analyzing each company’s performance.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Pembina Pipeline, and Toronto-Dominion Bank. The Motley Fool recommends Canadian Natural Resources, Enerflex, Parex Resources, Pembina Pipeline, and Thomson Reuters. The Motley Fool has a disclosure policy.

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