TSX Today: What to Watch for in Stocks on Thursday, July 2

The TSX edged higher before the Canada Day holiday as gains in technology and mining stocks offset weakness elsewhere, with investors turning their attention to the U.S. jobs report and fresh trade-related developments today.

Key Points
  • The S&P/TSX Composite Index rose 33 points to 34,857 on Tuesday, backed by gains in technology, mining, and financial stocks, amid subdued trading before the Canada Day holiday.
  • MDA Space jumped 8.5% following a $688 million contract from the Canadian government for a satellite project, while Silvercorp Metals fell 7% due to compliance costs with China's new mine safety regulations.
  • Mixed trends in commodity prices could impact TSX performance at the open today, with eyes on the U.S. jobs report and the renewal process of CUSMA, both of which could influence investor sentiment.

A rebound in metals prices helped Canadian stocks trade on a slightly positive note on Tuesday, even as trading volumes remained subdued ahead of the Canada Day holiday. The S&P/TSX Composite Index edged up by 33 points, or 0.1%, to close at 34,857, recovering a small portion of the previous session’s losses.

Despite weakness in some key sectors, such as utilities, consumer staples, and energy, strong gains in technology, mining, and financial stocks helped the TSX benchmark finish in positive territory.

tsx today

Top TSX Composite movers and active stocks

MDA Space (TSX: MDA) was the top-performing TSX stock for the day, as its shares climbed 8.5% to $58.60 apiece. This rally in MDA stock came after the Canadian government awarded the company a $688 million contract to build, test, and launch a replenishment satellite for the RADARSAT Constellation Mission.

The contract given to MDA is part of the government’s broader $1.012 billion, 15-year investment to strengthen Canada’s sovereign satellite capabilities. Investors welcomed the announcement, as the deal highlighted MDA Space’s growing importance in Canada’s space and defence sector while adding to its long-term project pipeline.

Trekor Metals, Celestica, and Curaleaf were also among the day’s top gainers on the Toronto Stock Exchange, with each climbing by at least 5.9%.

In contrast, Silvercorp Metals (TSX: SVM) plunged by 7% after the metals mining firm warned that new nationwide mine safety requirements in China will temporarily slow operations at its Ying and GC mining sites.

Silvercorp said it is upgrading safety systems and facilities to comply with the new regulations, with the work expected to cost about US$11.5 million. As a result, production at the Ying Mining District is expected to decline by 40% to 50% during the July-to-September quarter, while output at the GC mine is projected to fall by around 50% over the same period. On a year-to-date basis, however, SVM stock is still up 25%.

Methanex, Rogers Communications, and Saputo also slipped by at least 3.7% each, making them among the day’s worst-performing TSX stocks.

Based on their daily trade volume, Telus, BCE, TC Energy, Canadian Natural Resources, and BlackBerry were the five most active stocks on the exchange.

TSX today

Crude oil and base metals prices trended lower in early trading on Thursday, but gold and silver prices edged higher, pointing to a mixed start for the commodity-heavy TSX index today. While weakness in oil and industrial metals could weigh on energy and some mining stocks, firmer precious metals prices may provide some support to gold and silver miners.

With no major domestic economic releases due, Canadian investors will closely monitor the key U.S. jobs report this morning, which could offer fresh clues about the strength of the U.S. labour market and lead to further shifts in interest rate expectations.

Markets may also react to trade-related headlines after the United States declined to renew the Canada-U.S.-Mexico Agreement (CUSMA) for another 16-year term, triggering the pact’s built-in annual review process. Although the review process is widely viewed as a negotiating mechanism rather than an immediate threat to cross-border trade, investors may keep a close watch on further developments given the importance of the U.S. market for many TSX-listed companies, especially in the industrial, manufacturing, and automotive sectors.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bce, BlackBerry, Canadian Natural Resources, Celestica, and MDA Space. The Motley Fool recommends Canadian Natural Resources, Celestica, MDA Space, Methanex, Rogers Communications, and TELUS. The Motley Fool has a disclosure policy.

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