Canadian traders slow movers today

A government report on orders
for big ticket items showed the
U.S. economy might be slowing down
some finally. More reports on GDP
and wage costs are due tomorrow.
All three reports will play some
part in the US Federal Reserve
Open Market Committee’s decision
in three weeks about whether to
raise interest rates.

Speculation on the Street has
it that the Fed won’t move. Witness
the recent fire-sale of government
bonds, sending prices to levels
not seen since last June. Then,
the subsequent move into interest-
rate sensitive equities, like bank
and brokerage stocks. For example,
J.P. Morgan climbed US$7 1/8
to $128 1/2, American Express
bloated by US$6 1/4 to $151.
The S&P picked up 14.80 to close
at 1296.71. The Dow picked up 92.76
to close at 10,394.89.

On the other hand, Nasdaq issues
took a hit on some less-than-
impressive earnings reports. For
example, Online auctioneer e-Bay Inc.
dropped US$10 7/8, to $141 1/8,
having missed an earnings
forecast. Earthwatch Inc.,
a web-based, business-to-business
information site, picked up a
US$1 1/16 to $33 9/16 because its
losses were less than expected.
Nasdaq closed down 8.95 to 2802.52.

Canadian investing was slow
again today. Volume was thin in
both Montreal and Toronto. The TSE
dropped 54.47 points to close at
7011.47, and the ME slipped 35.76
to 3705.01. Nortel Networks
continued to rise, gaining C$1.70
to $85.50, but oils and mining
stocks continued their downward
slide.

The VSE still inched up 0.36
points to 395.56, and the ASE
slipped a bit, by 0.41 to 2806.34.