Bush fails to soothe markets
RTGAM
North American stock markets extended their losing streak Friday on fears that the U.S. President's $145-billion (U.S.) stimulus plan will not be enough to prevent the U.S. economy from slipping into a recession.
The Dow Jones industrials average closed Friday's session at 12,115.64, off 43.57 points or 0.36 per cent. The S&P 500 lost 6.70 points to 1,326.55 while the Nasdaq closed down 10.99 or 0.47 points at 2,335.91.
President George W. Bush unveiled a relief package Friday that he said must include tax incentives for business investment and "direct and rapid" tax relief for individuals.
Charmaine Buskas, a senior economics strategist for TD Securities Inc., said the Bush plan should boost gross domestic product by about 1 per cent.
"But with few details and narrow expectations that anything can get passed in short order, the package seems like it is too little, too late and ultimately weighed on already weakened markets," she said.
U.S. stock markets are off to their worst yearly start on record: In the 13 trading sessions of 2008, the Dow has lost nearly 9 per cent, while the S&P has fallen 9.75 per cent and the Nasdaq nearly 12 per cent.
(U.S. stock markets will be closed on Monday for the Martin Luther King Day holiday.)
In Canada, the S&P/TSX tumbled 135.27 points, or 1.06 per cent, to 12,660.36, with metal, mining, energy and financials all falling.
The index officially entered correction mode on Wednesday, having lost around 12 per cent since its Oct. 31 high. It has dropped more than 1,000 points in the last four sessions.
With files from wires.
Copyright 2001 The Globe and Mail