By Stewart Lewis
(June 13 – 17:30) – More evidence from the U.S. Commerce Department that the economy in that country is slowing encouraged investors, today. Stocks rose as investors latched on to the latest retail sales report as evidence that might persuade the U.S. Federal Reserve Board to leave interest rates alone when its next meeting comes around.
The Dow Jones industrial average rose 57.63 closing at 10,621.84. The NASDAQ composite index finished the day up 83.15 at 3,851.06.
Stocks also got a boost from Fed Chairman Alan Greenspan. In a speech before the New York Association for Business Economics, he said productivity has improved due to basic changes in the economy, rather than temporary factors that could disappear. Greenspan did not discuss interest rates. But traders saw his comments as an indication that the the Fed is comfortable with the economy’s pace.
In Canada, the big news was Finance Minister Paul Martin’s unveiling of financial sector reform legislation. (For a complete report on the stories coming out of the reform legislation click on our “Special Reports” button.) Despite the excitement among the financial services community, the news failed to move the markets much.
The TSE 300 composite index rose, but barely, finishing the day up 16.87 to 9836.5. Four of the TSE sub-indices finished higher. It was an especially good day for Canada Life. It rose $1.25 to $31.25. It was an even better day for tech darling JDS Uniphase, which added $8.55, ending at $179.20.