TSX Today: What to Watch for in Stocks on Tuesday, May 12

Strong gains in mining and energy shares pushed the TSX to a three-week high, though today’s sentiment could depend on oil prices, the latest U.S. inflation data, and more earnings from Canada.

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Key Points
  • The S&P/TSX Composite Index rose 61 points on Monday, driven by strong mining and energy stocks amid higher commodity prices, despite broader sector weaknesses.
  • Barrick Mining surged over 9% on robust first-quarter results, with revenue up 67% and a new US$3 billion buyback program.
  • Oil prices continued to rise due to Strait of Hormuz tensions in early Tuesday trading, which could lift TSX energy stocks at the open today as investors focus on U.S. inflation data and key TSX earnings.

Canadian equities started the new week on a slightly positive note, backed by stronger commodity prices and largely upbeat earnings reports, even as investors remained cautious about the worsening U.S.-Iran standoff. The S&P/TSX Composite Index inched up by 61 points, or 0.2%, on Monday to settle at 34,139 — marking its highest closing level in three weeks.

Despite weakness in most key sectors, including technology and industrials, solid intraday gains in mining and energy stocks lifted the TSX benchmark.

Market sentiment on both sides of the border stayed fragile after U.S. president Donald Trump said the temporary ceasefire with Iran was on “massive life support” and rejected Tehran’s counterproposal as unacceptable.

tsx today

Top TSX Composite movers and active stocks

Barrick Mining (TSX: ABX) climbed by more than 9% to $64.40 per share, making it one of the top-performing TSX stocks for the day. This rally in ABX stock came after the Toronto-headquartered gold and copper producer’s first-quarter gold production beat guidance, while strong prices helped the company post upbeat first-quarter results.

Notably, Barrick’s quarterly revenue rose 67% year over year to US$5.22 billion. More importantly, the firm’s adjusted quarterly net earnings soared by 180% from a year ago to US$0.98 per share. Investors also reacted positively to Barrick’s operating cash flow, more than doubling to US$2.55 billion, and the announcement of a new US$3 billion share-buyback program. Over the last year, ABX stock has climbed by nearly 138%.

Surging metals prices also helped mining stocks like Endeavour Silver, Silvercorp Metals, and Avino Silver & Gold Mines rise by at least 8.9% each, making them among the day’s top gainers on the Toronto Stock Exchange.

On the flip side, Bausch Health, Shopify, Kinaxis, and goeasy were the session’s worst-performing TSX stocks, as they dived by at least 6.6% each.

Based on their daily trade volume, Enbridge, Capstone Copper, B2Gold, Suncor Energy, and ARC Resources were the five most active stocks on the exchange.

TSX today

After rallying in the previous session, metals slipped in early trading on Tuesday, but West Texas Intermediate (WTI) crude oil futures prices continued to trend higher as concerns around the Strait of Hormuz kept energy markets on edge.

Investors will continue to monitor the U.S.-Iran standoff after Trump said the month-long ceasefire was still in place but remained weak. Meanwhile, Iran defended its counterproposal and warned that its armed forces were ready to respond to any aggression.

While no major domestic economic releases are due, Canadian investors may want to keep a close eye on the monthly consumer inflation report from the U.S. this morning.

In addition, several TSX-listed companies, including Wesdome Gold Mines, Constellation Software, goeasy, Freehold Royalties, Peyto Exploration & Development, Power Corporation of Canada, Finning International, Franco-Nevada, Parex Resources, First Majestic Silver, Pet Valu, and George Weston, will release their latest quarterly earnings reports today, which could keep their shares in focus throughout the session.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Enbridge, Kinaxis, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends B2Gold, Constellation Software, Enbridge, Freehold Royalties, Kinaxis, Parex Resources, and Pet Valu. The Motley Fool has a disclosure policy.

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