Canadian stocks took a breather on Tuesday following an eight-session rally, even though the domestic consumer price index (CPI) showed further cooling inflationary pressures. After closing at a fresh all-time high, the S&P/TSX Composite Index slid by 79 points, or 0.3%, yesterday to 23,037, settling above the 23,000 level for the fourth straight day.
Even though consistent strength in gold and silver prices drove some mining stocks higher, heavy losses in other main market sectors, such as energy, healthcare, and consumer cyclicals, pressured the TSX index.
According to Statistics Canada’s latest report, the CPI for July 2024 climbed by 2.5% from a year ago, registering its slowest pace of increase over three years. Lower prices for travel-related services, passenger vehicles, and electricity primarily drove this deceleration last month.
Top TSX Composite movers and active stocks
Tilray Brands, Cenovus Energy, Capstone Copper, and Ballard Power Systems were the worst-performing TSX stocks, with each diving by more than 3% for the day.
Shares of Northland Power (TSX:NPI) also ended the session in the red after the Toronto-based power producer confirmed an incident at its Hai Long offshore wind project’s Changhua onshore substation in Taiwan on August 20. The company said that the incident, which has now been contained, involved a carbon dioxide leak from the fire suppression system, which affected 17 workers. All work at the substation is still suspended pending investigation.
Despite the broader market rally, Northland stock has lost 5.8% of its value in the last four sessions even as its second-quarter earnings, released last week, beat Street analysts’ expectations by a wide margin with the help of higher wind resources and contributions from new projects. NPI stock is now down 7.4% year to date.
In contrast, Canada Goose, Torex Gold, StorageVault Canada, and B2Gold inched up by at least 2.7% each, making them the day’s top performers on the Toronto Stock Exchange.
Based on their daily trade volume, Canadian Natural Resources, Manulife Financial, Enbridge, Great-West Lifeco, and Suncor Energy were the five most active stocks on the exchange.
TSX today
Metals prices were largely firm early Wednesday morning, but crude oil and natural gas prices were trading on a bearish note. Given these mixed signals, I expect the commodity-heavy main TSX index to remain flat at the open today.
While no major domestic economic releases are due, energy investors may want to keep an eye on the latest U.S. crude oil stockpile figures this morning. In the afternoon, the Fed’s July meeting minutes are to be released, which will remain on investors’ radar.
Market movers on the TSX today
