Stocks mixed amid uncertainty
RTGAM
North American stock markets finished Tuesday's session mixed, as investors digested further liquidity injections by central banks and earnings news from a number of U.S. heavyweights.
The European Central Bank infused about $500-billion (U.S.) into money markets on Tuesday, after the U.S. Federal Reserve auctioned off $20-billion on Monday. Central banks in North America, Europe and Britain are providing billions of dollars in multi-week loans in a bid to boost demand in struggling areas of the credit markets.
The S&P/TSX composite index slumped 29.04 points to 13,358.07, as a drop in the financial sector outweighed gains in gold and mining.
All of the big five Bay Street banks lost ground, with Canadian Imperial Bank of Commerce leading the way with a 2.6 per cent fall. Among the day's winners, Kinross Gold Corp. and Barrick Gold Corp. rose alongside bullion pric
es.
Peter Chandler, senior vice-president at Canaccord Capital told Reuters that worries about the fallout from the credit crunch and about global economic growth are hampering markets.
"There's ongoing concern about the credit crunch and the spillover fallout that's happened, and more anxiety about what hasn't happened that may happen yet, particularly as it relates to the financial services industry," Mr. Chandler said.
On Wall Street, the Dow industrials closed 65.27 points higher at 13,232.47. In the broader U.S. market, the Nasdaq climbed 21.57 points while the S&P 500 rose 9.08 points.
U.S. technology shares climbed after Adobe Systems Inc. on Monday topped analyst expectations with its fourth-quarter earnings and forecast.
Goldman Sachs Group Inc. Tuesday also topped profit forecasts, but shares of the U.S. investment bank slumped on word it believes the subprime mess could still hurt its business.
With files from wires.
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