TSX Today: What to Watch for in Stocks on Friday, July 17

The TSX pulled back modestly from its record high on Thursday as weakness in mining stocks offset gains elsewhere, while investors today will watch commodity prices and Middle East developments for fresh direction.

Key Points
  • The S&P/TSX Composite fell 76 points to 35,340 on Thursday as mining losses from falling metals prices overshadowed gains in industrials and consumer cyclicals.
  • BlackBerry, Celestica, and Hammond Power sank over 8%, while Cogeco fell 2.6% on weak results from its U.S. business.
  • Falling metals prices may pressure TSX mining stocks at the open today as investors focus on escalating U.S.-Iran conflict.

Canadian stocks eased from their record highs on Thursday as investors continued to watch the escalating U.S.-Iran conflict, which has continued to fuel uncertainty around global energy supplies. The S&P/TSX Composite Index slipped 76 points, or 0.2%, to close at 35,340 — snapping its two-day winning streak.

While the Bank of Canada’s recent comments about improving economic outlook kept driving industrial, consumer cyclical, real estate, and technology stocks higher, steep declines in metals prices led to big declines in the mining sector, dragging the TSX benchmark lower.

tsx today

Top TSX Composite movers and active stocks

BlackBerry, Celestica, Hammond Power Solutions, and Skeena Resources were the worst-performing TSX stocks for the day, with each plunging by more than 8%.

Cogeco Communications (TSX: CCA) also slipped by 2.6% after the company reported weaker third-quarter revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), largely due to continued pressure in its U.S. business. Last quarter, its revenue fell 4.5% year over year to $724.2 million, while adjusted EBITDA declined 2.9% to $357 million as the American telecommunications segment faced a smaller subscriber base and intense pricing competition.

In addition, Cogeco recorded a $2.2 billion non-cash impairment charge related to its U.S. operations, resulting in a quarterly loss of $1.8 billion. On a brighter note, the Canadian telecom firm’s adjusted earnings rose 29.2% to $3.10 per share, and free cash flow increased 15.7% to $170.7 million. On a year-to-date basis, CCA stock is now down around 6%.

On the flip side, TFI International, Descartes Systems, Constellation Software, and WSP Global climbed by at least 5.1% each, making them the day’s top-performing TSX stocks.

Based on their daily trade volume, Telus, TD Bank, BlackBerry, Canadian Natural Resources, and Barrick Mining were the five most active stocks on the Toronto Stock Exchange.

TSX today

Metals prices continued to fall sharply in early trading on Friday, which could pressure mining stocks and weigh on the TSX at the open today.

While no major domestic economic releases are due, Canadian investors will keep an eye on the latest consumer sentiment and inflation expectations data from the U.S. this morning.

Geopolitical developments could also shape trading sentiment after the United States launched a sixth consecutive night of strikes on Iran, while Tehran responded with fresh attacks on military targets in Bahrain and Kuwait. The latest fighting has remained centred on control of the Strait of Hormuz, where shipping traffic has fallen sharply amid the renewed U.S. naval blockade.

Any further disruption to this critical energy route could push oil prices higher and support TSX energy stocks, even as broader market volatility remains elevated.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in BlackBerry, Canadian Natural Resources, Celestica, and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Constellation Software and Hammond Power Solutions. The Motley Fool recommends Canadian Natural Resources, Celestica, Cogeco Communications, Descartes Systems Group, TELUS, TFI International, and WSP Global. The Motley Fool has a disclosure policy.

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