TSX Today: Why Canadian Stocks Could Rally on Wednesday, February 8

Continued recovery in commodity prices could lift the main TSX index at the open today.

| More on:
tsx today

The Canadian stock market roller-coaster ride continued on Tuesday, as investors continued to assess the possibility of a looming recession amid a rough corporate earnings season. Despite opening slightly lower from its previous closing, the S&P/TSX Composite Index ended yesterday’s session at 20,725 with 96-point, or 0.5%, gains, as the Federal Reserve chair Jerome Powell’s comments about easing inflation sparked a late market rally.

Although the shares of utilities and consumer noncyclicals companies fell sharply on February 7, an intraday recovery in commodity prices across the board lifted the commodity-linked Canadian market sectors.

Top TSX Composite movers and active stocks

Shares of Lithium Americas (TSX:LAC) popped by nearly 10% in the last session to settle at $34.68 per share after a favourable court ruling related to its Thacker Pass project boosted its investors’ confidence. In a press release, the Vancouver-headquartered lithium company said that the U.S. District Court’s latest ruling “confirms the permitting process for Thacker Pass was conducted thoroughly and responsibly, and results in there being no impediment to commencing construction.”

Notably, the Thacker Pass project is 100%-owned by Lithium Americas, which it claims to be the largest known lithium resource in the United States. With this, LAC stock now trades with 35.1% year-to-date gains.

First Quantum Minerals, TFI International, and BELLUS Health were also among the top-performing TSX stocks yesterday, as they inched up by at least 5.9% each.

In contrast, shares of Canopy Growth, Finning International, Quebecor, Empire Company, and Hydro One slipped by at least 2.5% each, making them the bottom performers for the day on the Toronto Stock Exchange.

Based on their daily trade volume, Enbridge, Suncor Energy, Manulife Financial, and Barrick Gold were the most active stocks on the exchange.

TSX today

After bouncing back from their lowest level in many weeks, crude oil and precious metals prices continued to strengthen further early Wednesday morning. Given these positive signals from the commodities market, I expect the main TSX index to open higher today with expected sharp gains in energy and mining stocks.

While no domestic economic releases are due, Canadian energy investors may want to keep a close eye on the latest crude oil stockpiles data from the U.S. this morning.

On the corporate events front, TSX-listed companies like SmartCentres REIT, Sun Life Financial, and Great-West Lifeco are expected to announce their latest quarterly results after the market closing bell on February 8.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Enbridge and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.   

More on Metals and Mining Stocks

todder holds a gold bar
Metals and Mining Stocks

Canadian Mining Stocks: Buy, Sell or Hold?

Investing in quality gold mining stocks that trade at a reasonable valuation could help you beat the TSX index over…

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

Is First Quantum Minerals Stock a Buy?

Let's dive into whether First Quantum Minerals (TSX:FM) is worth buying at current levels, or if investors should sit this…

Read more »

nugget gold
Metals and Mining Stocks

Competitive? Beat the Market With These 2 Dividend-Paying Growth Gems

Investors looking to beat the market buying dividend stocks right now need to focus on this right sectors. Here are…

Read more »

nugget gold
Metals and Mining Stocks

A Canadian Billionaire Investor Sold Micron Stock and Bought This TSX Company Instead

Prem Watsa focuses on value over short-term growth.

Read more »

Concept of multiple streams of income
Metals and Mining Stocks

Is Franco-Nevada Stock a Buy for Its 1.2% Dividend Yield?

Gold royalty stocks represent a niche in the precious metals industry. They have different dynamics from mining stocks.

Read more »

todder holds a gold bar
Metals and Mining Stocks

The 1 Mining Stock Canadians Should Buy and Hold Forever

Newmont is a gold mining stock that trades at a cheap valuation, making it a top investment choice for those…

Read more »

Metals and Mining Stocks

Top Canadian Gold Stocks to Buy Now

Canadian gold mining stocks such as Barrick Gold and Kinross Gold are two top investments in October 2024.

Read more »

todder holds a gold bar
Stocks for Beginners

Is the Worst Over for SSR Mining Stock?

SRR Mining stock has been rising higher after recent earnings performance that made a bit of a comeback. So is…

Read more »