By James Langton
(May 5 – 1300ET) – Markets appear to be shrugging off the scary inflation data released in the U.S. this morning. At midday the TSE 300 composite index is up 105 points to 9,518. Volume is light at just 53 million shares on the first day of real patio weather in Toronto this year. The split between advances and declines and in the volume of buying and selling is almost even all the way around.
Nortel Networks is leading the technology stocks, the industrials group and indeed the entire TSE higher at midday. The stock is up 4% in heavy trading, making the techs far and away the strongest sector.
The spillover effect is boosting JDS Uniphase, 724 Solutions, Newbridge and Research in Motion. QLT Phototherapeutics is up as well, leading the biotechs.
Gold is the weakest group, followed by pipelines, utilities and consumer products. Weakness in Ballard Power and Biovail is hitting the consumer side. Other big losers include Sierra Wireless, Placer Dome, Suncor Energy and Gildan Activewear.
Financials are down, led by a 2% drop at CIBC. Merger rumblings continue to plague the fund industry, but no deals yet.
In New York, stocks are up across the board. The Dow Jones industrial average has added 144 points to 10,556. NASDAQ is up 73 points to 3,793. The S&P has gained 20 points to 1,430. All this comes in the face of mounting evidence that inflation is building and interest-rate rises are certain.
The CDNX is up 15 ticks today to 3,546. Volume is strong at 20.1 million shares. Techs are leading the way and energy stocks are up, while miners are sliding. Kingfisher Ventures is up 110% to 42¢ on 2.64 million shares.