By Gavin Adamson
(April 27 – 17:00 ET) – Markets closed on a mixed note as good quarterly reports weighed in heavily against inflation worries.
First quarter economic data shows that the U.S. economy grew at its fastest rate in more than 16 years boosted by strong consumer spending. And labour costs rose 1.4%. So, of course, investors are worrying again about higher interest rates from the U.S. Federal Reserve.
The Dow slumped, dropping 57.40 to 10,888.10, with GE, J.P. Morgan and American Express leading the way. Losses were capped on the downside by the gains in hardware tech stocks, IBM and Intel. More than two stocks fells for every stock that gained on the NYSE.
On the other hand, the Nasdaq Composite Index jumped on news from MCI Worldcom and Broadvision Inc., which reported better-than-expected earnings growth. Nextel and Qualcomm followed those companies upwards. The index finished up 143.84 to 3773.93.
The TSE slipped by 55.30 to 9,322.70. The usual suspects, BCE and Nortel, led the markets. Today they dipped by C$5.40 and $5, to $167.80 and $169 respectively. JDS Uniphase rode the market to $144.25, up $8.25.
The price of crude oil rose on speculation that summer demand will push prices up, but that wasn’t enough to keep the CDNX composite buoyant. The index edged down 15.08 to 3,513.12, continuing to bleed tech stock volume.