By Gavin Adamson
A relatively optimistic report from the U.S. Federal Reserve tempered investors’ fear of another interest rate hike next month.
The Fed’s report on regional economics, commonly called the “Beige Book,” reported that retail sales across the US have been brisk. But prices remained stable, allaying interest-rate-hike fears.
Consequently, big share-price gains for companies like Costco, which gained US$1 11/16, to $68 11/16, and Winn Dixie, which added $1 15/16 to $32 9/16, cushioned widespread losses today. In fact, the S&P gained 2.93 to finish at 1310.51, mostly on the strength of retail stocks.
On the other hand, the Dow reflected a more mixed market. It lost 74.40 to 10.524.07. Nasdaq edged up by 37.07 to 2858.17, mostly on the strength of three new Internet issues.
Canadian markets were also mixed, but down. At one point, 12 of the TSE’s 14 sectors were lower at noon. The transportation sub-index was particularly hard hit, down 1.4% at one point. CNR Co. was down C$0.90, to $45.85.
The precious metals sector was again an exception after the Brits sold off some of their bullion above market price yesterday. Overall, the TSE finished down 31.74, closing at 6886.13. The ME lost 83.38, to 3661.09.
The big gainer today on the VSE was Chapleau Resources Ltd., which saw its share price gain close to 20%, to $1.52 in late trading. The VSE was up 0.58 to 407.37 at one point. The ASE inched up 11.35, to 2804.68.