TSX Today: What to Watch for in Stocks on Wednesday, August 7

An overnight recovery in commodity prices could lift the TSX index today as investors await more corporate earnings.

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Canadian stocks fell sharply for the third consecutive session on Tuesday as recent weakness in commodity markets and a selloff in global equities amid heightened U.S. recession fears weighed on investors’ sentiments. After diving by as much as 568 points in intraday trading, the S&P/TSX Composite Index recovered later during the session to settle at 21,979, down 248 points, or 1.1%, from its previous closing.

While all key market sectors trended downward, heavy losses in healthcare, mining, and consumer stocks primarily pressured the TSX benchmark yesterday.

tsx today

Top TSX Composite movers and active stocks

Algoma Steel, Osisko Mining, SSR Mining, Energy Fuels, and Aya Gold & Silver were the worst-performing TSX stocks for the day, tanking by at least 6.7% each.

Pet Valu Holdings (TSX: PET) also slipped by more than 5% to $25.32 per share, making it among the bottom performers on the Toronto Stock Exchange. These sharp declines in PET stock came after the Markham-headquartered retailer and wholesaler of pet-related supplies announced its second-quarter financial results.

In the quarter ended June 2024, Pet Valu’s sales rose 3.5% to $265.2 million due partly to growth in its franchise revenues. Although the company’s adjusted quarterly earnings of $0.38 per share exceeded Bay Street analysts’ expectations, higher distribution and occupancy costs and higher discounts drove its operating profit down by around 16%, hurting investors’ sentiments. On a year-to-date basis, PET stock is now down 12%.

In contrast, Innergex Renewable Energy and Quebecor were the session’s top-performing TSX stocks, rising by at least 2.5% each.

Based on their daily trade volume, Enbridge, Suncor Energy, Tourmaline Oil, TD Bank, and Manulife Financial were the five most active stocks on the exchange.

TSX today

After consistently sliding for several sessions, crude oil, natural gas, and precious metals prices staged a recovery early Wednesday morning, which could lift the commodity-heavy main TSX index at the open today. Canadian investors may want to keep an eye on the domestic purchasing managers index data this morning, which could give further direction to stocks.

On the corporate events side, several TSX-listed companies, including Stantec, Pason Systems, SilverCrest Metals, Manulife Financial, Fortuna Silver Mines, Wheaton Precious Metals, IGM Financial, Granite REIT, Equinox Gold, Crombie REIT, Innergex Renewable Energy, NexGen Energy, Nutrien, Stelco, Torex Gold, Canadian Apartment Properties REIT, Killam Apartment REIT, Pan American Silver, Shopify, Air Canada, Stella-Jones, Brookfield Asset Management, and Sprott, are likely to announce their latest quarterly results on August 7.

Market movers on the TSX today

The Motley Fool has positions in and recommends Killam Apartment REIT, Pason Systems, and Shopify. The Motley Fool recommends Brookfield Asset Management, Enbridge, Granite Real Estate Investment Trust, Pet Valu, Stella-Jones, and Tourmaline Oil. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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