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Forex · News · USMarket

NEWS / USMarket

USmarket Activity of tenders on Wall Street is coming to zero, indexes are stable

11:47 12/23/2005

Yesterday releases have again supported shares on Wall Street, which opened with growth after the publication of statistical reports. Consumer expenses grew on 0.3 % in November.
Thus economists expected increase on 0.4 %. And the population’s incomes have shown growth on 0.4 % as well as experts forecasted.
Let\'s notice that in November core PCE index, reflecting personal consumption except for energy carriers and foodstuffs rose in the USA on 0.1 % by October and on 1.8 % by November, 2004.
Annual value of the index is minimal since March of the last year.
On the average economists predicted index growth on 0.2 % m/m. In October index growth made 0.1 % m/m. The US FRS uses actively this index for determination of inflationary pressure.
Personal expenses in the USA came up on 0.3 % m/m in November against growth on 0.2 % in October, growth of personal incomes made 0.3 % against 0.5 %.

Other data have been a little bit better than the expectations, but could not change the general market’s mood.
So, the jobless claims in the USA made 318000 for a week by 17.12, at the forecast 327000. And the previous value has been revised from 329000 up to 331000.
The indicator has been noticeably better than the forecast and has reached a minimum level for more than a month.

And the leading indicators index in the USA made +0.5 % for November, at the forecast of +0.4 %. Thus the previous value has been revised from +0.9 % up to +1.0 %.
The given indicator has been better than the expected level besides its previous value is revised to increase.

At opening Research In Motion Ltd shares were growing. We shall remind that the company’s profit, except for some real accounts, made 71 cent per a share in the third quarter.
It has exceeded the average analysts’ forecast, which made 63 cents per a share.
Red Hat Inc. papers have risen in price on 65 cents - up to $27.21. The last quarter the net profit of the company was above the experts’ forecasts.

The stock indexes are still supported by the news promoting further downturn of oil quotations.
As OPEC president and minister of oil of Kuwait sheikh Ahmad al-Fakhid as-Sabakh has declared the cartel can keep the production at a former level the next quarter to satisfy the increasing world demand for oil.
\"We consider that the market is rich in oil\", - he told.
Let\'s remind that according to December report of cartel the following year demand in China will grow on 6.1 % that is connected with active economic rise.
\"China is one of the basic oil consumers\", as-Sabakh has told. As he said OPEC increases the production depending on that how much \"the situation with growth of demand in China\" varies.
Traditionally demand for oil goes down in the second quarter after the end of the winter in the northern hemisphere.
OPEC acting general secretary Adnan Shikhab-Aldin considers the present oil prices optimum.
On his estimation, the oil price of OPEC “basket” will be kept at a level of $45-55 for barrel the following year.

As a result Dow-Jones index of New York stock exchange has grown on 55.71 points and is at a level 10889.44. NASDAQ index has come up on 14.83 points and is at a level 2246.49. S&P 500 index has risen on 5.33 points and is at a level 1268.12.
Profitability of the US state obligations for 30 years has fallen on 0.058 in comparison with the previous closing and makes up 4.612.

Though key stock indexes continue trade in a narrow range, nevertheless we suggest to wait for long felt correction.
And only after its realization it is possible a long-term purchase of futures for Dow-Jones and S&P 500 indexes.
While it is necessary to be outside of the market.

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