TSX Today: What to Watch for in Stocks on Tuesday, August 11

Rising crude oil prices could help TSX energy stocks open higher on Tuesday, while investors continue to assess more corporate earnings and uncertainty surrounding U.S.-Iran negotiations today.

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Key Points
  • The TSX Composite rose 0.2% to 36,458, driven by rising oil prices amid U.S.-Iran conflict uncertainties, boosting energy stocks despite declines in utilities and consumer staples.
  • Strathcona Resources and International Petroleum led gains, while Barrick Mining dropped over 6% despite strong year-on-year revenue due to sequential earnings and cash flow declines.
  • Expect elevated energy prices to impact TSX energy shares at the open today, influenced by U.S.-Iran negotiations over the Strait of Hormuz, and watch for earnings from companies like Air Canada and Constellation Software.

Canadian equities continued to reach new heights for a second consecutive session on Monday as surging oil prices amid uncertainty about the U.S.-Iran conflict boosted shares of energy companies. The S&P/TSX Composite Index inched up by 77 points, or 0.2%, to settle at a new all-time high of 36,458, extending its five-day gain to 3.5%.

Even as sharp declines in many key sectors like utilities, consumer staples, and real estate pressured the TSX benchmark, renewed buying in energy and technology stocks kept the broader market rally intact.

tsx today

Top TSX Composite movers and active stocks

Strathcona Resources, International Petroleum, Endeavour Silver, and Ero Copper were the top-performing TSX stocks for the day, with each climbing by at least 6.6%.

In contrast, Superior Plus and ATS plunged by at least 6.8% each, making them the day’s worst-performing TSX stocks.

Barrick Mining (TSX: ABX) was also among the session’s bottom performers on the Toronto Stock Exchange, as its shares slipped by more than 6% to $57.03 per share. Despite the decline, the Toronto-based gold miner reported a 44% year-over-year jump in its second-quarter revenue to US$5.3 billion.

However, Barrick’s net earnings fell 24% sequentially, while attributable free cash flow plunged 88% from the first quarter to US$141 million. Its gold all-in sustaining costs also climbed 9% sequentially, partly reflecting higher fuel costs and lower grades at some mines. Despite strong year-over-year results, the sharp sequential declines in the company’s earnings and free cash flow, along with higher gold production costs, pressured Barrick stock.

According to the exchange’s daily trade volume data, Enbridge, Telus, Barrick Mining, Suncor Energy, and B2Gold were the five most active stocks on the exchange.

TSX today

Crude oil prices extended their rally in early trading on Tuesday, which could lift TSX energy stocks at the open today.

The gain in oil came as hopes for a near-term reopening of the Strait of Hormuz weakened after Washington and Tehran added new conditions to any broader agreement. U.S. president Donald Trump suggested that the U.S. would seek compensation from Iran as part of future talks, while Tehran has continued to demand sanctions relief, compensation, and an end to military pressure before fully reopening the waterway. These geopolitical uncertainties could keep energy prices elevated while leaving inflation concerns in focus.

With no major economic releases due this morning, Canadian investors will continue to closely monitor more second-quarter corporate earnings reports. Many TSX-listed companies, including Denison Mines, Constellation Software, Franco-Nevada, Exchange Income, Air Canada, Peyto Exploration & Development, and Pet Valu, are expected to announce their latest quarterly results today.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Air Canada and Enbridge. The Motley Fool has positions in and recommends Constellation Software. The Motley Fool recommends ATS Corp., Air Canada, B2Gold, Enbridge, International Petroleum, Pet Valu, Superior Plus, and TELUS. The Motley Fool has a disclosure policy.

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