TSX Today: What to Watch for in Stocks on Monday, June 8

The TSX suffered its sharpest percentage decline in more than three months on Friday as stronger-than-expected economic data reduced rate cut hopes, with investors today watching Middle East developments for clues about the market’s next move.

Key Points
  • The TSX dropped 804 points on Friday due to falling commodities and strong labour data, diminishing hopes for near-term rate cuts.
  • TerraVest Industries fell nearly 32% amid insider trading allegations, while Transcontinental and Curaleaf gained over 6% each.
  • TSX investors will watch for crude oil and base metals price trends today, with a focus on Middle East developments and their impact on energy market volatility.

Canadian stocks fell sharply on Friday as falling commodity prices and much stronger-than-expected labour market data from both sides of the border dampened hopes for near-term interest rate cuts. The S&P/TSX Composite Index plunged by 804 points, or 2.3%, to settle at 34,413 — registering its biggest single-day percentage decline in more than three months.

Even as some sectors like consumer staples, healthcare, and utilities showed strength, heavy intraday losses in technology, energy, and mining stocks dragged the TSX benchmark sharply lower.

tsx today

Top TSX Composite movers and active stocks

TerraVest Industries (TSX: TVK) tanked by nearly 32% to $108.40 per share, making it the worst-performing TSX stock for the day. This massive selloff in TVK stock was mainly triggered by allegations that executive chairman Charles Pellerin tipped family members and acquaintances about the company’s $780 million Entrans acquisition before it was publicly announced.

News reports indicated that Quebec’s financial regulator obtained a search warrant and is investigating whether several individuals linked to Pellerin made nearly $6.8 million in gains through suspicious trading activity. TerraVest said its board has initiated a review of the allegations and will cooperate with regulators if approached. On a year-to-date basis, TVK stock is now down more than 34%.

Ero Copper, Americas Gold and Silver, and NGEx Minerals were also among the day’s bottom performers on the Toronto Stock Exchange, as they fell by more than 15% each.

On the brighter side, Transcontinental, Curaleaf Holdings, Metro, and Chartwell Retirement Residences climbed by at least 3.9% each, making them the session’s top-performing TSX stocks.

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

TSX today

Crude oil and base metals prices rose in early morning trading on Monday, but gold and silver prices extended their recent decline. These mixed commodity price trends could lead to a muted start for the resource-heavy TSX today, with strength in energy and industrial metals stocks expected to be offset by weakness in precious metals miners.

While no major economic releases are due, Canadian investors will continue to monitor developments in the Middle East after Iran announced a halt to its current military operations against Israel, while warning that it could respond forcefully if attacks continue in Lebanon. Markets may welcome signs that both sides are seeking an immediate ceasefire, but lingering uncertainty around the broader regional conflict and key energy shipping routes could keep commodity prices and investor sentiment volatile in the near term.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in BlackBerry, Canadian Natural Resources, and Enbridge. The Motley Fool recommends Canadian Natural Resources, Enbridge, and TerraVest Industries. The Motley Fool has a disclosure policy.

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