Weak jobless reports on both sides of the border sent markets into a tailspin Friday.
The TSE 300 closed down 47.20 points at 7,368.80, its lowest point in 22 months.
Volume on the TSE was 136 million shares, and market momentum was decidedly negative. Declines outpaced advances 566 to 462, with 222 issues closing unchanged. Seventy-one issues hit new lows during the session.
Today’s jobless reports hit merchandisers, financial services and hard, but the metals & minerals sub-index suffered the most today, falling 3%.
It wasn’t all doom and gloom on the TSE, however, six of the TSE’s 14 sub-indices posted gains. Golds, the usual safe haven, closed up 1.68%. The beleaguered industrial sub-index, home to the TSE’s tech stocks, managed to advance a slight 0.19%.
Techs were buoyed when Intel affirmed its latest guidance last night. Nortel Networks, the day’s top trader, closed up over 4%, adding 36¢ to $8.71. Celestica fared worse, losing $1.65 to close at $43.65.
Other gainers today included Anderson Exploration, up 5¢ at $39.71 and Canadian Pacific, up 51¢ at $58.74.
The biggest losers today were the big banks. CIBC slipped $1.50 to $55.50. Royal Bank shed $1.24 to $48.65. TD Bank and Scotia also closed lower. The possibility of a deeper, longer economic slowdown forecast by today’s jobs numbers took a bite out of the banks.
The weak jobless report also hit retail stocks. Sears Canada fell $3.90 to close at $17.80. Loblaw Cos. Slipped $1.61 to $52.15, and Hudson’s Bay Co. gave up $1.31 to close at $16.40.
The Canadian Venture Exchange bucked today’s down trend. The CDNX Index closed up 20.38 at 2, 993.62. Volume was 30.1 million shares, with 200 advances, 187 declines and 531 issues unchanged.
In New York stocks plunged in response to a much worse than expected jobs report. The U.S. unemployment rate hit 4.9%, its highest level in four years. The unexpectedly weak report shook Wall Street.
The Dow Jones industrial average plummeted 234.99 points to 9,605.85, a loss of 2.39%. Tech stocks held up a bit better, with the Nasdaq composite index dropping 17.95 points to1,687.69. The S&P 500 closed down 20.62 points at 1,085.78.
TSE 300 falls to 22 month low
Dow plunges on weaker than expected jobless report
- By: Alan Husdal
- September 7, 2001 September 7, 2001
- 16:05