RTGAMBullish investors who believe that the stock market saw its lowest point in October could find plenty to smile about on Monday. U.S. manufacturing activity fell to its lowest level since 1982 and U.S. auto makers reported their worst sales month since the Second World War - and yet major North American stock market indexes barely budged.
The Dow Jones industrial average closed at 9319.83, down 5.18 points or less than 0.1 per cent. The broader S&P 500 closed at 966.31, down 2.44 points or 0.3 per cent.Given the dismal reports, the slight declines could imply that a deep recession is already be factored into stock prices. Indeed, General Motors Corp. shares fell jut 2.4 per cent after the auto maker reported that its sales plunged 45 per cent in October, year over year.
After adjusting for population growth, it represented the worst month in the postwar era. Similarly, Ford Motor Co. shares fell 2.7 per cent after it reported a 30-per-cent drop in sales.In other moves, Home Depot Inc. fell 5.8 per cent, Walt Disney Co. fell 3.4 per cent and General Electric Co. fell 1.1 per cent. On the upside, Citigroup Inc. rose 2.5 per cent, Microsoft Corp. rose 1.3 per cent and Coca-Cola Co. rose 3.2 per cent.In Canada, the S&P/TSX composite index closed at 9721.09, down 41.67 points or 0.4 per cent.
There, commodity producers were the big weight dragging the index into negative territory, after the price of crude oil tumbled to $63.91 (U.S.) a barrel, down 3.90. EnCana Corp. fell 4.5 per cent, Canadian Natural Resources Ltd. fell 5.4 per cent and Suncor Energy Inc. fell 6.2 per cent. As well, Barrick Gold Corp. fell 4.5 per cent.However, insurance companies were strong, with Manulife Financial Corp. up 8.3 per cent, and Sun Life Financial Inc. rose 4.1 per cent. Research In Motion Ltd. was another big mover, rising 3.8 per cent, and Bombardier Inc. rose 6.9 per cent.Copyright 2001 The Globe and Mail