Gregory Thomas
Sun
Markets moved lower on both sides of the border Tuesday as growing evidence of a slowdown in U.S. housing shook consumer confidence.
Data from January shows housing prices dropped 0.2 per cent year over year in the 20 largest U.S. markets. It was the first time prices have fallen year over year since January 2001, when the S&P/Case-Shiller housing index was first published.
U.S. consumer confidence dropped to 107.2 this month from 111.2 in February on concerns over rising mortgage foreclosures and the February sell off in the stock market.
Earnings dropped 73 per cent at Lennar, the biggest U.S. homebuilder, while the U.S. justice department, the FBI, and the internal revenue service launched a probe into the lending activities of Beazer Homes, the ninth-largest U.S. homebuilder.
The Dow Jones Industrial average fell 71.78 points, or 0.6 per cent, to 12,397.29. The S&P 500 slipped 8.89, or 0.6 per cent, to 1428.61.
The Nasdaq composite shed 18.20, or 0.7 per cent, to 2437.43.
News of faltering U.S. construction hurt metal prices. In New York, the May copper contract fell 8.10 cents, or 2.6 per cent, to $3.0575 a pound, its biggest drop in a month. April gold slipped 0.2 per cent to $662.50 an ounce.
The S&P/TSX materials group declined 1.2 per cent. Alcan ended 71 cents lower at $61.34. Vancouver-based Teck Cominco finished down 82 cents at $82.41. Goldcorp gave back 52 cents to $28.74.
The S&P/TSX composite index dropped 84.12 points, or 0.6 per cent to 13,218.76.
The S&P/TSX venture composite bucked the trend, climbing 6.80 or 0.2 per cent to 3168.23.
The May crude contract ended higher by two cents at $62.93 US. Prices surged in electronic after-hours trading on speculation relating to the status of the 15 British military personnel being held in Iran.
Five trades completed between $68 US and $68.09 US a barrel.
Crude moved lower later in the after-hours session, to $64.46 US.
This morning in Singapore, crude traded at $63.87 US.
The U.S. dollar lost ground to the euro and the yen.
The Canadian dollar gained 0.31 US cents to 86.40 US, following a third-place finish Monday for the Parti Quebecois in the Quebec provincial election, the separatist party’s worst showing in 36 years.
Gregory Thomas is an investment adviser and Certified Financial Planner. His market commentary is broadcast on all-news radio News1130. Views expressed are the author’s alone, and not necessarily those of his employer, BMO Nesbitt Burns Inc., member CIPF. Tel 604-631-2693.
© The Vancouver Sun 2007