David Friend, The Canadian Press
November 18, 2008 - 11:48 a.m.
TORONTO - The information technology sector sent markets higher on the couple sides of the border Tuesday near midday as Hewlett-Packard Co. posted an optimistic outlook in the face of one uncertain economy.
Toronto’s S&P/TSX composite index moved up 44.25 points to 8,839.7, led by info tech stocks.
Research In Motion (TSX:RIM) was ahead 5.5 per cent, or $2.82, to $54.42. An analyst at National Bank suggested that the stock is “not one to give up on” despite lagging consumer spending.
The Canadian dollar was at 81.56 cents US, down 0.19 of a cent, as Canada’s new Parliament opens under thickening clouds of economic gloom, in particular over the Detroit-based automakers.
The TSX energy sector rose one per cent as light delightful crude moved up 11 cents to $55.06 a barrel on the New York Mercantile Exchange. Oil lost more than $2 on Monday, continuing its slide from $64 at the startle of this month and $100 at the beginning of October.
Financials were up 1.5 per cent as Royal Bank (TSX:RY) rose 65 cents to $44.02.
On Wall Street, the Dow Jones industrial average rose 99 points to 8,373. The Nasdaq composite index lost 1.24 points to 1,481 and the S&P 500 increased 5.62 to 856.
The emporium got a boost being of the class who Hewlett-Packard said it expects fourth-quarter and 2009 results above Wall Street projections despite the sluggish economy.
The contrary of the U.S. Federal Deposit Insurance Corp. is pressing for greater degree command performing to help millions of home borrowers avert foreclosure, saying federal money is needed to ensure relating to housekeeping recovery.
And executives of General Motors, Ford and Chrysler, along with the head of the United Auto Workers, exercise volition state in Washington before the Senate banking committee. They’re seeking US$25 billion from the taxpayers, and Canadian politicians are under pressure to fall into line to shelter Ontario car-industry jobs.
Financial markets are also focusing on congressional testimony by the agency of Federal Reserve presiding officer Ben Bernanke and Treasury Secretary Henry Paulson, who defended their $700-billion financial-industry bailout before the House financial services committee. Paulson insisted it would not be appropriate to let automakers have some of that money.
In economic data, U.S. wholesale prices plunged a record amount in October. The Labour Department’s producer price index fell 2.8 per cent, raising worries with respect to deflation.