Tech stocks lead the way again

JDS Uniphase Corp., the
Ottawa-based fibre optics producer,
announced a $US2.8 billion buyout
of one of its suppliers,
Optical Coating Labs. The
news sent both stock prices higher,
and carried JDS up US$9 1/8 to
$200 9/16 on Nasdaq.

The Nasdaq closed up again, by
27.59 to 3,056.10 – it’s second day
above 3,000. The index also got
help from Ditech Communications,
a telecommunication s supply
company when it announced that
it beat earnings estimates by
about US$0.30. Its share price
climbed 40%, or US$36 1/2 to $127.
An analyst also released a bearish
report about Motorola, the
chip maker, which sent its share
price up $US3 1/4 to $105 1/2.

The Dow edged up by 30.51, to
10, 639.57. Financial Services
stocks performed well again, this
time on speculation that proposed
sector reform legislation cleared
the U.S. Senate. The changes will
allow banks and insurers to provide
some of the same products and
services. Consolidation is a likely
result.

The S&P closed at 1396.65, up
7.72.

On the TSE, five of the 14
sub-indices closed higher today.
The TSE was led again by utilities
and industrials. After two days of
tumbling, the shares of Ottawa-
based Newbridge Networks
took on C$2.25 to close at $23.40.
The telecomm equipment provider
has underperformed earnings
expectations for seven of the past
11 quarters. Nortel Networks
gained another C$4 to $98, as well.

The ME slipped by 3.53, to close
at 3,800.69. The VSE inched down
0.89 to 392.39, and the ASE was up
marginally, 1.77, to 2883.92.

Expect market action tomorrow
when the latest U.S. jobs report
will be released. If wages are
shown to be creeping up, the level
of interest-rate hike speculation
is sure to heighten.