TSX Today: What to Watch for in Stocks on Friday, September 4

TSX investors will closely watch Canadian and U.S. jobs data today for fresh economic signals, while developments in the U.S.-Iran conflict and Canada-U.S. trade talks could also drive sentiment.

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Key Points
  • The TSX surged 542 points to 36,633 on Thursday, its largest gain in four weeks, driven by rising metals prices and improved sentiment from potential Canada-U.S. trade talks.
  • Celestica and Wesdome Gold Mines rose over 8%, while 5N Plus gained 4.4% on a U.S. Department of War contract.
  • Mixed commodity prices offer no clear TSX direction today, with investors’ focus on jobs reports from Canada and the U.S. for economic insights before the long Labour Day weekend.

Canadian stocks continued to recover for a second consecutive session on Thursday as surging metals prices supported mining shares, while investors assessed the latest developments in the U.S.-Iran conflict and Canada-U.S. trade dispute. Prime Minister Mark Carney’s comments that Canada remains ready to negotiate a mutually beneficial trade agreement with the United States also helped improve investor sentiment. As a result, the S&P/TSX Composite Index jumped by 542 points, or 1.5%, to settle at 36,633 – registering its biggest single-day percentage gain in four weeks.

Besides metals and mining, other key market sectors like financials, industrials, and technology led the TSX rally, even as energy and utility stocks remained under pressure.

tsx today

Top TSX Composite movers and active stocks

Celestica, Wesdome Gold Mines, Discovery Mining, and Denison Mines were the top-performing TSX stocks for the day as they climbed by at least 5.4% each.

Shares of 5N Plus (TSX: VNP) were also among the day’s gainers on the Toronto Stock Exchange, as they rose 4.4% after the company was selected for a US$7.3 million award from the U.S. Department of War. The funding will support domestic production of gallium arsenide components for U.S. defence applications at 5N Plus’s facility in Utah.

5N plans to add crystal-growth and compounding equipment, and work with Lockheed Martin on product qualification. The Saint-Laurent-headquartered firm also said the new capabilities could open opportunities in other defence and space applications. The award boosted investor optimism about 5N’s role in the U.S. defence supply chain and its longer-term growth potential.

In contrast, Curaleaf, Spartan Delta, Baytex Energy, and Methanex slid by at least 2.4% each, making them the session’s worst-performing TSX stocks.

Based on their daily trade volume, Canadian Natural Resources, Enbridge, Suncor Energy, Telus, and Manulife Financial were the five most active stocks on the exchange.

TSX today

Commodity prices were largely mixed in early trading on Friday, giving no major directional signal for the resource-heavy main TSX index at the open today.

Canadian investors will closely monitor jobs reports from both sides of the border this morning for fresh clues about labour market conditions and the broader economic outlook. The Canadian employment data could be especially important after the Bank of Canada noted continued excess supply in the labour market while keeping its benchmark interest rate unchanged at 2.25% earlier this week.

Investors may also want to keep an eye on developments in the U.S.-Iran conflict, which could continue to drive volatility in crude oil prices. Meanwhile, fresh signals that Canada-U.S. trade talks could resume may influence investor sentiment toward trade-sensitive TSX stocks heading into the long Labour Day weekend.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources, Celestica, and Enbridge. The Motley Fool recommends Canadian Natural Resources, Celestica, Enbridge, Methanex, and TELUS. The Motley Fool has a disclosure policy

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