TORONTO 鈥� Losses in technology stocks helped lead sa国际传媒's main stock index lower Thursday, while U.S. stock markets were mixed as the Nasdaq was dragged down by the weakness in technology.
U.S. earnings season appears to be supporting a broadening of the rally that was already underway, said Allan Small, senior investment adviser at iA Private Wealth.
鈥淥verall, it looks like we were seeing a bit of a rotation maybe into some of the other areas 鈥� which is a good thing for the rally, for a bull market,鈥� he said.
鈥淲e鈥檙e seeing banks participate on the back of some strong earnings.鈥�
The S&P/TSX composite index was down 54.30 points at 20,436.87.
In New York, the Dow Jones industrial average was up 163.97 points at 35,225.18. The S&P 500 index was down 30.85 points at 4,534.87,while the Nasdaq composite was down 294.71 points at 14,063.31.
With the big U.S. banks beating expectations last week, and some tech names disappointing this week, the Dow outperformed other indexes on Thursday as the Nasdaq fell more than two per cent.
Dragging the tech-heavy index down were a number of semiconductor companies, including Nvidia Corp., Taiwan Semiconductor Manufacturing Company Ltd., and Advanced Micro Devices Inc. Shares in TSMC were down more than five per cent after it reported disappointing earnings.
鈥淭he semis are having a tough day, and I think that鈥檚 leading the charge for the Nasdaq downward,鈥� said Small.聽
Tesla and Netflix also moved lower Thursday after reporting earnings, with concerns about profitability for the electric car company. Investors may have been profit-taking on Netflix, noted Small, as the company reported stronger profits than expected. After the company鈥檚 password crackdown clearly gave it a boost, questions remain about how much further Netflix can grow, he said. 聽
Small thinks market participation will continue to broaden as earnings season progresses, with investors eyeing the big tech names whose stocks have soared amid an artificial intelligence spree.
鈥淚nvestors are going to need to hear something positive鈥� from those companies, said Small, while he expects banks will move higher after beating expectations 鈥� albeit low ones.
Meanwhile in sa国际传媒, absent any major economic news, 鈥渆verything is flat,鈥� said Small.
The Canadian dollar traded for 75.92 cents UScompared with 75.93 cents US on Wednesday.
The September crude oil contract was up 36 cents at US$75.65 per barrel and the August natural gas contract was up 15 cents at 2.76 per mmBTU.
The August gold contract was down US$9.90 at US$1,970.90 an ounce and the September copper contract was up two cents at US$3.83 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published July 20, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
