By James Langton
(May 11 – 13:00 ET) – Markets are bouncing a little today after economic data suggested that the U.S. economy may be cooling. Many traders though are waiting for more evidence due tomorrow. The TSE 300 composite index is up 53 points to 9150. Volume is light at 74.3 million shares, about 3:1 in favour of buyers. Advances are outpacing declines more than 5:4.
Although the financials are generally down, Sun Life popped 2% on news of its intended share buyback. Trimark continues to crawl ahead on heavy volume, trading up 10¢ on 2.1 million shares so far today. Interest in takeover target Mackenzie has cooled.
On a sector basis eight of 14 TSE subgroups are up. Technology stocks, both hardware and software, are leading the way. Most other increases are moderate. Nortel Networks is up, bouncing off recent down days to trade up 2.4%. Some traders feel the recent tech selloff was simply overdone and they are now seeing some bargain hunters. Also up are JDS Uniphase, 724 Solutions, Research in Motion and Ballard Power.
Golds and conglomerates are leading the downside, joined by financials, media stocks and paper firms. Thomson and Seagram are taking down media stocks, both off 2%. Canadian Pacific, Placer Dome and Laidlaw are all down in heavy trading.
In New York markets are generally up in light trading. The Dow Jones industrial average has gained 147 points to 10514. NASDAQ is up 77 points to 3462. Last but not least the S&P has added 20 ticks to 1403.
The small caps remain the lone area of weakness. At midday the CDNX is down six points to 3360 on light volume of 17 million shares. Techs and energy stocks are bouncing lightly however. Pan Ocean Explorations is the biggest trader, up 50% to 18¢ on 1.33 million shares.