North American markets closed mixed today, with the tech sector hit by downgrades and earnings warnings.

The Toronto Stock Exchange 300 composite index slipped 42.02 points to 7,866.14.

TSE bellwether Nortel Networks was weak after Moody’s Investors Services lowered the credit rating on about US$8.5 billion worth of Nortel’s long-term and short-term debt and warned that it may be downgraded further. Moody’s said weakness in Nortel’s key markets appears to be “deeper and more protracted than previously”. Nortel shares closed down 55 cents at$8.95.

Nortel’s setback sent the tech-heavy industrial products sector falling 2.24%.

Bombardier lost 52¢ to $14.23, Celestica backed off $2.85 to $61.25 and Stelco gained 24¢ to $4.84.

Overall, In Toronto, nine of the 14 TSE subgroups finished lower. Only the gold and base metals sectors showed strength.

Market momentum was negative, as decliners outnumbered advancers 584 to 495.

Volume trailed off late in the session, as 162.6 million shares changed hands.

The precious metals group was the biggest gainer, ahead 1.6% as Placer Dome gained 30¢ to $18 and Goldcorp climbed 70¢ to $24.15.

Base metals were up 1.26%. Alcan climbed $1.02 to $64.90 and Inco Ltd. gained 99¢ to $31.

In economic news, Bank of Canada governor David Dodge said the worst of the economic downturn in Canada is over and growth should pick up this year and continue into 2003. In a speech to the France-Canada Chamber of Commerce in Paris, Dodge said the Canadian economy should grow by 3% to 4% by the second half of 2002.

Venture capital stocks fell today. The S&P/CDNX Composite Index closed down 5.00 at 1,157.55. Trading was heavy on a volume of 36.6 million shares, with 206 advances, 251 declines and 547 issues unchanged.

In New York, the Dow Jones industrial average managed a slightly higher close, but technology stocks slipped as a wave of bad news hit the telecom sector.

The Dow ended with a gain of 16.19 points to 10,627.43. The tech-heavy Nasdaq compositie index lost 37.18 points, or 1.9%, to 1,892.31, and the S&P 500 fell 4.65 points to 1,163.61.

Reports that the U.S. Securities and Exchange Commission is looking into the bookkeeping of long-distance provider WorldCom and QWest depressed stocks in both companies.

David Dodge’s comments today failed to boost the Canadian dollar. The loonie slipped 0.07¢ to US63.08¢.