TSX Today: What to Watch for in Stocks on Thursday, August 13

After reaching another record high on Wednesday, Canadian stocks could see a cautious start today as falling commodity prices weigh on resource shares and investors monitor more earnings reports and U.S. wholesale inflation data.

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Key Points
  • The TSX Composite Index gained 0.5% to reach a new high of 36,662, driven by gains in financials, mining, and utilities, despite technology sector declines.
  • Air Canada surged over 12% following a significant investment in Aeroplan, boosting its share repurchase plans, while Celestica and others also performed well.
  • Watch for potential pressure on the TSX today from lower commodity prices and focus on the U.S. wholesale inflation report, as well as ongoing developments in the Strait of Hormuz affecting energy stocks.

Canadian stocks extended their rally to a fourth straight session on Wednesday after U.S. consumer inflation data matched market expectations, while investors also kept a close eye on the escalating Middle East tensions and their impact on energy markets. The S&P/TSX Composite Index advanced by 186 points, or 0.5%, to settle at 36,662 — reaching a new all-time high for the third consecutive day.

Despite sharp declines in the technology sector, healthy intraday gains in financials, mining, and utility stocks helped the TSX benchmark extend its record-setting rally.

tsx today

Top TSX Composite movers and active stocks

Air Canada (TSX: AC) stock jumped 12.2% to $30.61 per share, making it the top-performing TSX stock for the day and extending its two-day gains to nearly 19%. Yesterday’s rally in AC stock came after the airline announced a $2.5 billion minority investment in Aeroplan led by Blackstone and La Caisse.

The deal values Aeroplan at $10 billion, while Air Canada will retain a 75% stake and full operational control. The company plans to use part of the proceeds to repay its upcoming US$1.2 billion bond maturity and most of the remaining amount to accelerate share repurchases. Investors welcomed this move as it has the potential to improve Air Canada’s balance sheet.

Celestica, Exchange Income, and I-80 Gold were also among the day’s top gainers on the Toronto Stock Exchange, with each rising by at least 4.8%.

In contrast, 5N Plus, H&R Real Estate Investment Trust, Constellation Software, and Sprott fell by more than 4% each, making them the session’s worst-performing TSX stocks.

Based on their daily trade volume, Enbridge, Air Canada, Canadian Natural Resources, Cenovus Energy, and Whitecap Resources were the five most active stocks on the exchange.

TSX today

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

With no major domestic economic releases due, Canadian investors will keep an eye on the latest U.S. wholesale inflation report this morning, which could give further clues about the inflation outlook and the Federal Reserve’s future interest rate decisions.

On the corporate events side, some TSX-listed companies like Wesdome Gold Mines, Onex, Discovery Silver, Brookfield, and Canadian Tire will release their latest quarterly earnings reports today.

Meanwhile, developments around the Strait of Hormuz will likely remain another key driver for TSX energy stocks. Iran reiterated Thursday that the strategic waterway remains under its control and will stay restricted until its conditions are met, directly challenging U.S. president Donald Trump’s claim that Washington has total control over the strait. For Canadian investors, any further escalation could keep oil prices volatile and support shares of major domestic producers.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Air Canada, Brookfield Corporation, Canadian Natural Resources, Celestica, and Enbridge. The Motley Fool has positions in and recommends Brookfield Corporation and Constellation Software. The Motley Fool recommends Air Canada, Blackstone, Canadian Natural Resources, Celestica, and Enbridge. The Motley Fool has a disclosure policy.

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