Rallying crude oil and base metals prices helped Canadian stocks start the new week with minor optimism despite the release of weaker-than-expected U.S. services purchasing managers index data. As a result, the S&P/TSX Composite Index rose 35 points on Monday to settle at 20,582.
Besides energy stocks, other key market sectors like real estate and consumer non-cyclical pushed the index higher, while most utility stocks slipped ahead of the start of the second-quarter earnings season.
Top TSX Composite movers and active stocks
Nutrien (TSX:NTR) stock gained 2.7% yesterday to settle at $84.95 per share, making it among the top-performing TSX stocks. This positive movement came after analysts at Wells Fargo upgraded their ratings on NTR stock from “equal weight” to “overweight” and raised their target price from $62 per share to $82 per share.
Notably, Nutrien is gearing up to announce its latest second-quarter results next week on August 2. According to Street analysts’ latest consensus estimates, its quarterly earnings are expected to decline by 51.6% year over year to $2.83 per share, possibly due to weakening industrial demand’s negative impact on global nitrogen trade. Year to date, Nutrien stock is now down 11.8%.
Strengthening oil prices drove energy stocks like Cenovus Energy, Imperial Oil, and Athabasca Oil up by at least 2.6% each in the last session.
Conversely, Aritzia, First Majestic Silver, Mullen Group, and Fortuna Silver Mines were the bottom performers on the Toronto Stock Exchange, as they fell at least 2.9% each.
Based on their daily trade volume, Enbridge, TC Energy, Manulife Financial, and Athabasca Oil were the most heavily-traded stocks on the exchange.
TSX today
After rallying to their highest level in over three months, West Texas Intermediate crude oil futures prices were mixed early Tuesday morning, but metals prices were largely bullish. Given these signals from the commodity markets, I expect the main TSX index to remain slightly positive at the open today.
Canadian investors may want to keep a close eye on the latest monthly consumer confidence from the United States this morning, which could give further direction to stocks.
On the corporate events side, TSX-listed companies Canadian National Railway and First Quantum Minerals are expected to announce their latest quarterly financial results after the market closing bell on July 25.
Market movers on the TSX today
