(August 10 – 09:00 ET) – There are no major economic releases today,
although Fed chairman Alan Greenspan speaks in Washington tonight. His speech will attract plenty of attention.
Statistics Canada is reporting that although most Canadian businesses use the Internet for email and other functions, it plays a tiny part in the economy overall. StatsCan reports that only one out of 10 companies used the Internet to sell goods and services in 1999, and these sales amounted to just 0.2% of their total economic activity.
In Europe the techs and telecoms are leading stocks higher. Drug stocks, however, are weighing on markets as Eli Lily plunges on news that it will have to give up its Prozac patent sooner than expected. Lily is driving down drug giants such as AstraZeneca plc and Glaxo Wellcome plc.
The FTSE is down 28 points to 6,386. Stocks are up on the continent though with the CAC 40 up 18 points to 6,588 and the DAX up 65 points to 7,291.
Stocks were mixed overnight in Asia, too. The Nikkei dropped 59 points to 15,975. The Hang Seng added 151 points to 17,333.
In earnings news, poor results at the Gap are threatening retail stocks.
Canadian Natural Resources Ltd. saw its net profit climb to $1.55 a share from 24¢ a year ago on oil price hikes.
Gildan Activewear says that before an after-tax special charge of $1.6
million, its profit doubled to $1.40 a share, up from 75¢ in the third
quarter of 1999. Including the special charge, net income was $1.29 a share.
Imax Corp. says it made US10¢ a share in the second quarter, up from 7¢ in the same period in 1999. The firm continues to look for a partner, however. It will make an announcement on this front by the fall.