By Gavin Adamson

(November 12 – 17:50 EST) –
North American markets closed on a
positive note again, on new
evidence that the U.S. economy is
healthy.


Economic reports in the U.S.
show that although productivity
continues to climb in the U.S.,
most signs of inflation are being
held at bay. The rise in the cost
of labour decreased in October
relative to September. Many
analysts are predicting the Fed
won’t raise interest rates another
quarter point before the end of
the year, as has been expected for
two months.


So the Dow soared, up 173.71 to
10, 769.01 lead by the interest-
rate sensitive financial services
stocks. Financials rose because of
the increased relative worth of
their bond holdings, and
speculation that they’ll start
lending to more institutions.
Citigroup added US$2.44 to
$54.56. American Express Co.
jumped $8, to $153.75. J.P
Morgan swelled by $6.13 to
$138.56. Broker Merrill Lynch
also closed up $7.06 to $82.56.


The Nasdaq was dragged downwards
most of the day by the falling
price of Intel Corp. stocks.
The company was downgraded by an
analyst because of increasing
competition in the computer chip
industry. It lost $3.69 to $75.75.
Dell Computers also inched
downward because the computer
manufacturer failed to meet
earnings projections.


But Nasdaq turned around late
in the day when a Morgan
Securities analyst predicted a
long-term price projection of
$460 for Qualcomm because of
the imminent sale of its analogue
phone business. Qualcomm, the
number one cell phone maker on the
continent, saw its price soar
$44.50 to $390 after that comment.
Nasdaq finished up 23.60 to
3,220.89.


In Canada, the TSE closed up
37/49 to 7,525.95. The index was
also lead up by the financial
services sector. This time the
lift came despite Nortel
losing ground all day. The stock
was down as much as C$4.10 at one
point. Newbridge added $2.60
to $29.40 in the afternoon, on
speculation that it would be a
takeover target.


The ME also closed up, by 14.30
to 3,906.85. Vancouver closed
down, but by less than a point.
The ASE added 20.52 to 2,940.33.