Market News: After the Bell



RTGAM






Whether you believe in the technical importance of stock market indexes breaking new lows or simply get a kick out of seeing an old record shattered, Thursday's stock market action was important.


The Dow Jones industrial average closed at 7,465.95, down 89.68 points or 1.2 per cent - busting through the previous low close in November and putting a new, though untested, floor on the market. On Nov. 20, the day of the previous low, the Dow closed at 7,552.29.


The S&P 500 remained above its Nov. 20 close - which could have the stronger impact on investor sentiment, given that it is a broader index. It closed at 778.94, down 9.48 points or 1.2 per cent - or more than 25 points above the November low.


Financials were weak yet again - this time on the double threat of nationalization and rising credit card defaults. Goldman Sachs analysts suggested that credit card defaults could rise above 10 per cent in 2009, thanks to rising unemployment, a record high that would wipe out half the expected profits at key U.S. lenders.


Bank of America Corp. fell 14 per cent, Citigroup Inc. fell 13.8 per cent and American Express Co. fell 8.7 per cent. In the case of Citigroup, the share price touched a new multi-year low.


Hewlett-Packard Co. fell 7.9 per cent, a day after the computer maker reported a 13 per cent drop in it quarterly earnings and cut its outlook for 2009.


In Canada, the S&P/TSX composite index closed at 8,185.35, up 9.4 points or 0.1 per cent. No, this appeared to have nothing to do with the visit by President Barrack Obama - despite his reassurances that U.S. trade with Canada remains important - and more to do with strong energy stocks. Suncor Energy Inc. rose 7.9 per cent and Canadian Natural Resources Ltd. rose 2.5 per cent after the price of crude oil rose to $40.18 (U.S.) a barrel, up $2.77.


Financials were mixed, with Manulife Financial down 3.9 per cent, Canadian Imperial Bank of Commerce down 0.2 per cent and Toronto-Dominion Bank rose 0.2 per cent.


Gold producers, however, were weak, even though the price of gold remained relatively steady at $976.50 an ounce. Yamana Gold Inc. fell 6 per cent and Barrick Gold Corp. fell 5.2 per cent.

Copyright 2001 The Globe and Mail