The close: Canada sails alone
RTGAMAre we close to the turn in the stock market that everyone has been waiting for? The fact that Canada's benchmark index posted gains on Wednesday for the first time this month, ending a horrendous five-day losing streak, is certainly encouraging.The gains were slight, especially compared to steep losses in previous sessions, but who's going to complain? Then again,
U.S. indexes slipped into the red near the end of the day, after being above water throughout most of the afternoon, suggesting that U.S. stocks are still groping for stability.The Dow Jones industrial average closed at 9258.1, down 189.01 points, or 2 per cent. The broader S&P 500 closed at 984.86, down 11.37 points, or 1.1 per cent.Both indexes were volatile throughout the day as investors weighed the probability that the co-ordinated interest rate cuts by six of the world's central banks would halt the economic slide. In the end, the market's collective answer appeared to be:
Probably not - despite an upbeat assessment from Treasury Secretary Henry Paulson.In a statement, Mr. Paulson said: "Today's announcement of a co-ordinated rate cut, including Europe, China and other large economies, is a welcome sign that central banks around the world are prepared to take the necessary steps to support the global economy during this difficult time."Alcoa Inc. fell 12 per cent, General Motors Corp. fell 9 per cent and Bank of America Corp. fell 7 per cent.
But there were some winners. General Electric Co. rose 1.7 per cent and Intel Corp. rose 1.4 per cent.In Canada, the S&P/TSX composite index closed at 10,055.39, up 225.84 points, or 2.3 per cent. Commodity producers were by far the biggest winners. Among gold miners, Goldcorp Inc. and Barrick Gold Corp. surged 20 per cent and 19 per cent, respectively, following the upward trajectory of gold to $906.50 (U.S.) an ounce. Potash Corp. of Saskatchewan Inc. rose 14 per cent.
Among energy stocks, Suncor Energy Inc. rose 1 per cent and Canadian Natural Resources Ltd. rose 3.1 per cent, taking a different path than crude oil. Oil slipped to $88.95 a barrel, down $1.11.Meanwhile, financials posted slim gains. Royal Bank of Canada rose 0.8 per cent and
Toronto-Dominion Bank rose 0.1 per cent.Copyright 2001 The Globe and Mail