Bargain hunters were out in force today, picking up losses from the triple-digit dives experienced last week by the markets in Toronto and New York. However, trading remained cautious ahead of tomorrow’s meeting of the U.S. Federal Reserve. Investors are looking to the Fed for clarity on the direction of interest rates.
In Toronto, the S&P/TSX composite index added a mere 24.33 points to 8,268.3. Nortel proved to be a major anchor on market movement. Its stock fell 8%, dropping 43¢ to $4.76, after the Ontario Securities Commission announced that Nortel is in default of securities rules by failing to file audited 2003 results or first-quarter 2004 results on time.
The TSX Venture Exchange slid 19.72 points at 1,643.24.
The Dow Jones industrial average rose 88.43 points, or 0.86%, to 10,314.00, while the Standard & Poor’s 500 Index gained 10.26 points, or 0.93%, to 1,117.56. The Nasdaq Composite Index was up 18.57 points, or 0.97%, at 1,938.72.
Ironically, this news about Nortel boosted other IT stocks. Celestica added 43¢ to $24.60 and Zarlink Semiconductor climbed 13¢ to $5.15. In New York, Intel Corp. gained 20¢ to US$25.93.
The financial sector helped to buoy the TSX. CIBC picked up 76¢ to $67.95 and Sun Life Financial rose 45¢ to $36.80.
Terrorist attacks in Saudi Arabia proved a boon for energy stocks as the price of crude ran up 72¢ to US$38.10. EnCana added $1.69 to $55.49. Talisman climbed $2.18 to $80.15 after announcing it has increased its holdings in the North Sea.
Active stocks included Kinross Gold, which dropped 12¢ to $7.48, BCE, which fell 29¢ to $27.30 and Inco, which added 97 ¢ to $40.21.
In the U.S. stocks rose slightly today. Investors were positively influenced by good news from companies like Adobe Systems Inc. and Microsoft, as well as upbeat economic data. However, investors are refusing to make much of a commitment, while they wait for standing the Federal Reserve’s policy-setting meeting tomorrow.