Tech stocks rebound after rough Monday
Technology stocks bounced back Tuesday after being pounded one day earlier when the U.S. Congress voted down the Bush administration's proposed financial bailout package.
Among the winners were Research in Motion, up six per cent in New York trading; Apple, up almost seven per cent; and Microsoft, up nearly eight per cent.
Like many equity issues, technology stocks have been on an up-and-down ride for the past week as world markets grapple with September's financial shakeout on Wall Street.
On Monday, Canadian and U.S. stock markets plunged by record single-day amounts after the U.S. Congress said no to a controversial $700-billion US bailout package.
Apple, whose stock was downgraded by two analysts Monday, closed down 17.9 per cent that day. Google ended the day down 11.6 per cent and Microsoft was off 8.7 per cent.
Tuesday's performance helped RIM stop its share value slide. Since the close of trading last Thursday, the Waterloo, Ont.-based BlackBerry maker has seen its share price slip about 30 per cent. It closed Tuesday at $71.71 in Toronto and $68.30 US on the Nasdaq.
Besides general market malaise, RIM has also been hurt by a recent earnings disappointment.
Monday's plunges came amidst what some analysts are calling the "thumbs on Wall Street" effect.
Recent chaos in the financial system is expected to further erode consumer confidence and their spending for electronic gadgets such as RIM's thumb-operated BlackBerry, say analysts.
While some market watchers say RIM's base of users in the business world will soften the blow, others say the effect of layoffs among BlackBerry-addicted Wall Street employees can't be ignored.
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