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Markets End Modestly Lower Amid Tech Sector's Losses

Strategic Insights

— 2 min read

The New York market ended yesterday with a modest decline, while Toronto finished lower in thin trading. The technology group was a major contributor to the losses, with several prominent companies in the sector experiencing significant declines.

Key Takeaways:

  • The Toronto Stock Exchange 300-stock index eased 7.59 points to 4,295.41, with rising issues running neck-to-neck with losers 386 to 387.
  • Volume was 55.7 million shares, up from Monday's 46.3 million, and value increased to $766.5-million from $587.1-million.
  • In New York, the Dow Jones industrial average eased 7.14 points to 3,681.69, with the broader market also weakening, with advancing issues trailing decliners 872 to 1,258.
  • Motorola's first-quarter share profit came in about 1 cent (U.S.) short of analysts' forecasts, leading to a decline in its stock price of $3.75 to $95.50.
  • The Semiconductor Industry Association's report on the backlog in the industry was also disappointing, with the industry experiencing a flat growth trend.
  • Ottawa-based Newbridge Networks was caught up in the wave of selling, falling $2.25 to $54.62 on Nasdaq and $3.25 (Canadian) to $75.50 on the TSE.
  • Interest-sensitive stocks, such as Telus, rose due to the firming bond market and the Canadian dollar's appreciation.
  • Corporate earnings are expected to be good in the next four weeks, potentially leading to a 200-point rally or more on the TSE 300.

Statistics:

  • The Toronto Stock Exchange 300-stock index eased 7.59 points to 4,295.41.
  • Volume was 55.7 million shares, up from Monday's 46.3 million.
  • Value increased to $766.5-million from $587.1-million.
  • The Dow Jones industrial average eased 7.14 points to 3,681.69.
  • Motorola's stock price declined $3.75 to $95.50.
  • The Semiconductor Industry Association reported a flat growth trend in the industry.
  • Ottawa-based Newbridge Networks fell $2.25 to $54.62 on Nasdaq and $3.25 (Canadian) to $75.50 on the TSE.
  • Interest rates fell to 5.84 per cent from 6.21 per cent.
  • The Canadian dollar closed at 72.54 cents (U.S.), up from 72.1 cents.

Sources:

  • Toronto Star, New York stock market, April 8, 1994
  • Reuters, Motorola misses earnings, April 8, 1994
  • Semiconductor Industry Association, Industry Backlog Report, April 1994
  • Richardson Greenshields of Canada Ltd., Market Commentary, April 8, 1994
  • Bloomberg, New York odd lots, April 8, 1994

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