The Nasdaq was also exposed to some downward pressure after software and service company Citrix Systems said its second-quarter earnings wouldn't meet expectations. The subsequent analyst's downgrades further promoted all around profit-taking.
In another tech sector, Corning announced it expects second-quarter results to improve by 50 percent, much higher than estimates, on the on the back of strong demand for its optical cables, networking components, and flat-panel glass products. Enjoying the ride on the favourable news were the usual optical suspects Nortel and JDS Uniphase.
Broadband has become the prevalent buzz word in the high-tech arena. Given the apparent limitations in the established telephone copper wires, the future is largely dependent upon fiber-optics, or optics for short. And it just so happens that NT and JDU are among the world leaders.
Outside the tech world, Canadian oil and gas producers were the beneficiaries of higher oil prices.
NYMEX crude oil futures surged as OPEC continued to indicate reluctance to raise crude production levels ahead of its June 21 meeting. The July contract was up US$1.45 at $31.65 per barrel, reaching a new contract high and the highest for a spot contract in three months.
This came after the Saudi Oil Minister tested the simple logic of economics 101 on investors by blaming high crude prices on the strong US oil products market. He felt it was important to understand this aspect of the market before taking a decision to trigger the OPEC price-band mechanism.
Up to now the price-band mechanism was always an informal plan, allowing members the license to control supply.
The members will be meeting in Vienna to discuss the possibility of increasing supply. There's a strong feeling among commodity traders that they won't do anything at the meeting. And the longer the wait, the tighter things are expected to get.
From a technical point of view, charts suggest spot crude could go as high as $33.
