RTGAM
Think about a high-flying stock. Now watch it fall.That seemed to be one of the themes playing out in North America on Thursday, as many of yesterday's winners turned south. Some might call it "profit taking."
Others will call it healthy consolidation. And still others will point out that winning stocks tend to overshoot their underlying fundamentals, creating dangerous momentum that ends in tears.Here are a few examples: Potash Corp. of Saskatchewan Inc. fell 1.1 per cent, its first losing day in the past 13 sessions; Monsanto Co. fell 3.2 per cent, a day after surging 7.2 per cent; and Timminco Ltd. fell 7.9 per cent, the biggest one-day setback for the specialized metals producer in about a month.That said, many of the long-ignored or beaten-up stocks performed well, leaving major indexes above water.
The Dow Jones industrial average closed at 12,620.49, up 1.22 points or flat on a percentage basis. Citigroup Inc. rose 2.5 per cent, American Express Co. rose 2.2 per cent and International Business Machines Corp. rose 2.2 per cent. Pfizer Inc. was the biggest loser on the blue-chip index, falling 3.3 per cent and dragging down Merck [amp]amp; Co. Inc. with it.The broader S[amp]amp;P 500 closed at 1365.56, up 0.85 of a point or less than 0.1 per cent. Google Inc. closed at $449.54 (U.S.), down $5.49 or 1.2 per cent.
After markets closed, the Internet company reported a surprising 31 per cent jump in first-quarter profit, beating expectations. In extended trading, the stock rose 11.5 per cent, to $501.In Canada, the S[amp]amp;P/TSX composite index closed at 14,115.50, up 16.02 points or 0.1 per cent. Without Potash Corp. - the biggest mover on the benchmark index in recent weeks, and now the biggest one-day drag - to drive it higher, the Big Banks and energy producers took the lead. Royal Bank of Canada rose 1 per cent and Toronto-Dominion Bank rose 0.9 per cent. Canadian Natural Resources Ltd. rose 1 per cent and Suncor Energy Inc. rose 1.7 per cent.[amp]nbsp;[amp]nbsp;Copyright 2001 The Globe and Mail