By James Langton
(March 21 – 13:00 ET) – Traders seem to be in a malaise ahead of the scheduled 14:15 ET announcement on U.S. interest rates, with most traders sitting on their hands in anticipation of a 25 basis point increase.
The TSE 300 opened lower , but recovered through the morning and is now down just 21 points, to 9,547. Volume has virtually disappeared at just 79.7 million shares. Market internals are moderately negative. Volume is about 4:3 in favour of sellers. Decliners are outpacing advancers 11:9.
Technology stocks led the downside momentum after a deeply negative open on the Nasdaq. The software stocks and biotechs led the consumer sector down strongly. Stocks such as Research in Motion, Sierra Wireless, Ballard Power and 724 Solutions are all falling again today. Cognos is one of the few strong software stocks are receiving an upgrade from DLJ. Angiotech Pharmaceuticals and QLT Phototherapeutics are leading the biotechs down.
There is also some weakness in the miners, industrials and utilities. Nortel Networks is down $1.75 on news of its latest acquisition. Investors apparently don’t like the deal’s dilutive impact on Nortel earnings.
Golds and media stocks are strong. The financials are slightly up, although the financial management companies are up notably. Tobacco stocks are also strong.
Bombardier is up 3.5% in heavy trading although there is no news from the firm.
Trading is also relatively light on the CDNX, just 39.1 million shares. The index though is taking a pounding, off 76 points to 4,395. Technology is leading the slide, down 2.3%, but the miners and energy stocks are also down too. TM Capital Corp. is the market leader, up 800% to $1.80 on 1.6 million shares.
In New York divergence has returned, with the old Dow up and the young Nasdaq up. The Dow has added 130 points to 10,810. Nasdaq is down 40 points to 4,569, after opening about 140 points to the downside. The S&P is up 12 points to 1,468.