TSX Today: What to Watch for in Stocks on Thursday, May 5
The market recovery gained steam on Wednesday, as Canadian stocks continued to rally for a second consecutive day. The TSX Composite Index inched up by 280 points, or 1.3%, to end the session at 21,185. The U.S. Federal Reserve raised the key interest rates by half a percentage point to fight inflation — as widely anticipated by investors. This monetary policy move seemingly boosted investor confidence, despite the country’s weaker-than-expected non-farm employment change and non-manufacturing PMI data.
In addition, an upward movement in commodity prices across the board also drove TSX commodity-linked stocks higher. While all key sectors on the Canadian market showcased strength, yesterday’s bullish movement was mainly led by energy, metals mining, real estate, healthcare, and industrials sectors.
Top TSX movers and active stock
Paramount Resources (TSX:POU) was the top gainer TSX stock on Wednesday, as it inched up by 12% to $35.83 per share after reporting its first-quarter financial results. The Canadian energy company’s adjusted earnings for the March 2022 quarter stood at $0.11 per share compared to its adjusted net loss of $0.62 per share in the March 2021 quarter. Paramount also announced yesterday an increase in its regular monthly dividend from $0.08 per share to $0.10 per share starting from May. After its latest sharp rally, POU stock is now trading with solid 46% year-to-date gains.
Canopy Growth, MEG Energy, Lithium Americas, Trisura Group, and Primaris REIT were also among the top-performing stocks on the TSX in the last session, as they inched up by at least 8% each.
In contrast, IAMGOLD stock tanked by 25% on May 4 after the company released its Q1 results. While the company managed to beat analysts’ revenue expectations, the surging costs of its Côté Gold project hurt investors’ sentiments. Equinox Gold and Home Capital Group were also among the worst-performing TSX stocks for the day, as they dived by 14.4% to 9%, respectively.
Based on their daily trade volume, Tamarack Valley Energy, Manulife Financial, Cenovus Energy, and Suncor Energy were the most active stocks on the Toronto stock exchange.
TSX today: Top earnings and economic events
TSX energy and precious metals mining shares might help the main index open positively today, as crude oil and gold prices were extending their gains early Thursday morning. While no major domestic economic releases are due today, Canadian stock investors could watch the latest initial jobless claims data from the U.S. market this morning.
As the corporate earnings season continues in full swing, several notable Canadian companies, including Dream Office REIT, Pembina Pipeline, Stelco Holdings, Aritzia, BCE Inc, Bombardier, NFI Group, Shopify, Cameco, and Labrador Iron Ore Royalty, are expected to announce their latest quarterly results on May 5.
The post TSX Today: What to Watch for in Stocks on Thursday, May 5 appeared first on The Motley Fool Canada.
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The Motley Fool has positions in and recommends Shopify and TRISURA GROUP LTD. The Motley Fool recommends ARITZIA INC, NFI Group, and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.
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