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Forex · News · USMarket

NEWS / USMarket

USmarket Key indexes are still stable, however downtrend correction is probable

16:34 12/21/2005

Despite the positive investors mood after the publication of economic statistics, the shares on Wall Street have opened mixed.
Let\'s remind that to the publication of the producer prices data in the USA has shown drop in of prices in industrial sector, having made 0.7 % in November while analysts predicted it at a level of 0.5 %.
These data have strengthened investors in opinion that inflation is under the control in the country.

Besides the tenders has been affected by the strike of workers of public transport in New York as some market’s participants can be late for work or remain at home.
For this reason, in Peter Kardilo\'s opinion from SW Bach and Co., the volume of the tenders can be lowered.

Positive market’s tone is formed by a situation in the fuel market. We shall remind that the oil prices stabilized at the tenders on Tuesday expecting for the ministry of power messages on a condition of fuel stocks in the USA.
Experts predict reduction of oven fuel stocks on 0.6 % -  to 129.7 million barrels during a week from December, 10 till December, 16th.
On the forecasts oil stocks have decreased on 1.2 million barrels.
As a result on NYMEX on December, 20th cost of oil futures with delivery in February rose on $0.04 - up to $58.09 per a barrel.
And on today morning oil trades in area of  $58.10 per a barrel.

However then, under pressure of the fallen shares of automobile conglomerate General Motors, Dow’s \"blue markers\" finished the last day with decrease.
Let\'s remind that when Japanese corporation Toyota has released its plans on increase of manufacture and output in 2006, General Motors shares dipped on 5.7 % to19.85.

And leaders of growth of yesterday trade were the financial sector papers as investors have positively reacted to the report on quarter profit of investment house Morgan Stanley which has surpassed Wall Street experts’ forecasts.
So, in 4 financial quarter Morgan Stanley net profit rose on 49 % up to $1.79 billion, or $1.68 per a share in comparison with $1.2 billion, or $1.09 per a share for the same period a year earlier.
The average forecast of net profit made $1.08 per a share. Morgan Stanley proceeds have grown on 28 % and have made $6.96 billion against $5.42 billion in the fourth financial quarter of 2004.
\"For the company conditions were very favorable\", - Matrix Asset Advisors representative Jordan Pozner has noted. 

Among financial papers the other leaders of growth were American Express Co. shares having risen on 1 % to 51.75, limiting losses of Dow index.
Besides the \"blue markers” have been supported by Boeing Co. shares which have grown on 1.1 % to 70.74 after the Hong Kong airline has announced its plans to buy about 40 Boeing planes within the next 5 years.

And after powerful growth on the eve pharmaceutical shares were under pressure yesterday because of profit fixing. As a result of Pfizer Inc. shares have fallen in price on 1.3 % to 24 dollars.

As a result Dow-Jones index of New York stock exchange has dipped on 30.98 points and is at a level 10805.55. NASDAQ index has fallen on 0.32 point and is at a level 2222.42. S&P 500 index has gone down on 0.30 point and is at a level 1259.62.
Profitability of the US state obligations for 30 years has grown on 0.017 in comparison with the previous closing and makes up 4.658.

Our last recommendations should be held good: to open long-term purchases of futures for Dow-Jones and S&P 500 indexes after achievement of correction of the pointed out levels.

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