The recovery in Canadian stocks gained steam before going into the long Thanksgiving holiday as rallying metals prices backed mining shares, while significantly worse-than-expected domestic employment change data renewed expectations of a more accommodative monetary policy stance from the Bank of Canada. The S&P/TSX Composite Index surged by 519 points, or 1.5%, on Friday to 35,665 – marking its biggest single-day percentage gain in 25 sessions and reaching its highest closing level so far this month.
Despite weakness in some stocks from the healthcare and consumer staples sectors, strong gains in mining, consumer cyclical, and technology stocks pushed the TSX benchmark sharply higher, helping it extend its recovery for the second consecutive session.
Top TSX Composite movers and active stocks
Another key factor driving consumer cyclical stocks higher was a strong earnings report from Aritzia (TSX: ATZ). The Vancouver-based fashion retailer reported a 44.1% year-over-year jump in its fiscal second-quarter (ended in August) revenue to $1.2 billion, backed by strong demand for its Summer and Fall collections.
Aritzia’s comparable sales in the latest quarter climbed 34.5%, while revenue from its U.S. operations surged over 60% and digital sales jumped roughly 68%. As a result, the company’s adjusted net profit more than doubled from a year ago to $156 million. Encouraged by these results, Aritzia also raised its full-year revenue outlook. These strong results and an improved growth outlook also drove ATZ stock up by 21% on Friday, making it the top-performing TSX stock for the day.
Lundin Gold, DPM Metals, and NovaGold Resources were also among the day’s top gainers on the Toronto Stock Exchange, with each advancing by at least 8%.
In contrast, Cogeco Communications, BCE, Air Canada, and Rogers Communications fell by at least 3.7% each, making them the session’s worst-performing TSX stocks.
Based on their daily trade volume data, TD Bank, Canadian Natural Resources, Telus, BCE, and Rogers Communications were the five most active stocks on the exchange.
TSX today
Commodity prices were largely mixed in early Tuesday trading, which could keep the resource-heavy main TSX index nearly flat at the open today.
While no major domestic economic releases are due, Canadian investors will continue to monitor the latest developments in Canada-U.S. trade relations and escalating geopolitical tensions in the Middle East.
Formal trade negotiations between Ottawa and Washington remain stalled, even as the United States and Mexico make progress toward a possible bilateral agreement ahead of next year’s Canada–United States–Mexico Agreement review.
Meanwhile, renewed Houthi attacks on Saudi Arabian airports and threats to shipping through the Strait of Hormuz have raised concerns about global energy supplies. Although these tensions could support crude oil prices and Canadian energy stocks, they may also add to inflation worries. With these uncertainties lingering, the TSX could see another volatile trading session today despite its strong rebound in the previous session.
Market movers on the TSX today
