TSX Today: What to Watch for in Stocks on Friday, April 24

With the TSX appearing on track to snap its four-week winning streak, investors could continue watching how volatile oil prices and continued Strait of Hormuz disruptions affect the global economy.

Key Points
  • The TSX Composite Index fell by 42 points on Thursday as renewed Strait of Hormuz tensions outweighed positive corporate earnings.
  • Waste Connections climbed over 8% after reporting strong first-quarter results with significant revenue growth and margin expansion.
  • Energy markets remain volatile with WTI oil near US$95 per barrel, as focus stays on TSX energy stocks amid geopolitical risks.

The Canadian stock market continued to witness heightened volatility on Thursday as investors assessed fresh ship seizures and renewed threats around the Strait of Hormuz, where both U.S. and Iranian forces have targeted vessels tied to the blockade in recent days. The S&P/TSX Composite Index ended the day with a 42-point, or 0.1%, drop at 33,913 — extending its week-to-date decline to 1.3%.

Even as largely positive corporate earnings led to renewed buying in sectors like industrials and utilities and surging oil prices lifted energy stocks, heavy intraday losses in shares of technology, healthcare, and mining companies pressured the TSX benchmark.

tsx today

Top TSX Composite movers and active stocks

Curaleaf, Discovery Silver, Shopify, and Constellation Software were the worst-performing TSX stocks for the day, with each plunging by at least 5.7%.

Despite the broader market weakness, Waste Connections (TSX: WCN) stock climbed more than 8% to $231.36 per share, making it the top-performing TSX stock for the day. This rally in WCN stock came a day after the solid waste services firm reported better-than-expected first-quarter results, driven by strong revenue growth and margin expansion.

Waste Connections posted revenue of $2.37 billion, up 6.4% year over year, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 8% to $769.5 million, with margins improving to 32.5%. Investors appeared encouraged by the company’s solid operating momentum and optimistic outlook, supported by pricing strength, acquisition activity, and favourable commodity trends.

Mullen Group, Canadian Pacific Kansas City, and Canadian National Railway were also among the session’s top gainers on the Toronto Stock Exchange, as they climbed by at least 4.4% each.

According to the exchange’s daily trade volume data, TC Energy, Enbridge, Canadian Natural Resources, Baytex Energy, and Telus were the five most active Canadian stocks.

TSX today

A day after climbing to their highest level in over a week, West Texas Intermediate (WTI) crude oil futures prices eased slightly in early trading on Friday, but remained close to US$95 per barrel as uncertainty around the Strait of Hormuz continued to keep energy markets on edge. The three-week extension of the Israel-Lebanon ceasefire may offer some support to broader sentiment, but reports of ongoing ceasefire violations and stalled U.S.-Iran talks could limit risk appetite.

For TSX investors, energy stocks may remain in focus at the open today, while transportation and consumer-facing companies could stay sensitive to higher fuel costs.

In addition to the domestic retail sales numbers, Canadian investors may want to keep an eye on the revised U.S. consumer sentiment data this morning.

Overall, the TSX appears on track to snap its four-week winning streak, with commodity price trends and ongoing geopolitical developments likely to remain key drivers ahead of a busy earnings week.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Enbridge, Shopify, and Waste Connections. The Motley Fool has positions in and recommends Mullen Group, Shopify, and Waste Connections. The Motley Fool recommends Canadian National Railway, Canadian Natural Resources, Canadian Pacific Kansas City, Constellation Software, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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