TSX Today: What to Watch for in Stocks on Tuesday, July 28

The TSX climbed to a fresh all-time high on Monday as strength in technology and consumer stocks outweighed weakness in resource shares, while today’s trading could be driven by earnings reports, commodity markets, and U.S. economic data.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published July 28, 9:00 am EDT

Despite weaker commodity prices, Canadian stocks started the new week on a strong note with a record-setting rally as hopes of a diplomatic breakthrough in the U.S.-Iran conflict improved investor confidence. The S&P/TSX Composite Index climbed by 199 points, or 0.6%, to settle at a fresh all-time high of 35,568, marking its second consecutive winning session.

Although weaker crude oil and precious metals prices pressured commodity-linked stocks, solid gains in most other key market sectors, including technology, consumer cyclicals, and industrials, helped lift the TSX benchmark to another record close. Utility stocks also trended lower as investors rotated away from defensive sectors and toward higher-growth areas ahead of the U.S. Federal Reserve’s interest rate decision.

Top TSX Composite movers and active stocks

Shopify, Thomson Reuters, WSP Global, and Kinaxis were the top-performing TSX stocks for the day, with each jumping by at least 6.6%.

CGI (TSX: GIB.A) was also among the day’s top gainers on the Toronto Stock Exchange, as its shares climbed by nearly 5% to $98.09 apiece. The rally in CGI stock came after the technology consulting firm revealed that the City of Munich selected it to support the next phase of the city’s digital transformation.

CGI will help improve administrative efficiency, expand digital services for citizens, and strengthen IT security and technological sovereignty. Notably, the new work builds on a 20-year relationship between CGI and Munich. Investors welcomed the expanded public-sector partnership and the potential for additional long-term digital services work.

In contrast, Badger Infrastructure Solutions, Finning International, Toromont Industries, and Vermilion Energy slid by at least 5.9% each, making them the session’s worst-performing TSX stocks.

Based on their daily trade volume, Telus, Whitecap Resources, Ivanhoe Mines, Enbridge, and Canadian Natural Resources were the five most active stocks on the exchange.

TSX today

Commodity prices across the board fell in early trading on Tuesday, which could pressure the resource-heavy TSX index at the open today.

Although the pause in U.S.-Iran strikes has encouraged hopes of de-escalation, the status of negotiations remains unclear, with Tehran rejecting Washington’s claim that direct talks are underway. Meanwhile, shipping through the Strait of Hormuz also remains disrupted, while fresh drone incidents in Jordan and Iraq highlight the risk of renewed hostilities. Any breakdown in diplomatic efforts could quickly reverse the decline in crude prices and weaken investor confidence.

While no major domestic economic releases are due, Canadian investors may want to keep an eye on the latest U.S. consumer confidence data this morning.

As the second-quarter corporate earnings season gains steam, several TSX-listed companies, including Methanex, Great-West Lifeco, Boardwalk REIT, Toromont Industries, Allied Properties REIT, Centerra Gold, First Quantum Minerals, Intact Financial, and Tamarack Valley Energy, are slated to release their latest earnings reports today.