U.S. financial sector reform one step closer

U.S. financial stocks rose after
key lawmakers and Clinton
administration officials reached
agreement on community lending
provisions for banks. The
compromise improved the outlook
for the passage of legislation.
If signed into law, it will enable
mergers between banks, brokerages
and insurers.

The Dow soared on the news,
picking up 172.56, or a 1.8%, to
10,470.25. Many brokers saw their
share-prices fly, including
Donaldson, Lufkin and Jenrette
Inc., which took on US$7 1/2
to $46 1/8. Charles Schwab Corp.
gained US$2 3/16, and Merrill
Lynch Inc. put on US$4 13/16 to
$72 1/8.

The S&P’s banking index took on
4%, and the 500 gained 18.17 to
1301.78. Nasdaq had a slower day,
bubut also stepped up by 14.88
to 2816.83.

The general optimism in the
U.S., and investors’ dismissal
of inflation fears, also caught
on in Canada. The TSE gained
87.89 to close at 7040.27. Nine
of the 14 sub-sectors were up at
noon, with communications and
media leading the way. Industrials
gained ground as well.
Nortel Networks Inc. also
stuffed another C$2.35 into its
share price, trading as high as
$81.80 today.

Gold prices, and consequently
mining stocks slipped some more
today, with Barrick and
Placer Dome dropping. In
late trading, the VSE was up 1.69
to 404.91, about the same level
it was at when the price of gold
started to fly two weeks ago.
The ASE was also up 16.77 to
2839.91. The ME gained 11.27 to
close the week at 3,711.04.