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Forex · News · USMarket

NEWS / USMarket

USmarket Investors estimated positively data of Friday US labor market review

11:47 01/09/2006

After the publication of the employment data by the Department of Labor Wall Street shares have renewed its forward movement. We shall remind that data of Friday US labor market review for December, being extremely varied, made some investors to choose their further actions.

 

So, nonfarm payrolls in the USA made +108000 for December, the forecast +200000. Thus the previous value has been revised from +215000 up to +305000. The indicator has been considerably below the forecast, however its previous value is revised to a maximum level for the last 20 months.

As a result unexpectedly low value of a current indicator has been offset a little bit by revision of the previous value to increase.

Thus unemployment in the USA made 4.9 % for December, the forecast 5.0 % and the previous value of 5.0 %.

And average hourly earnings index in the USA made +0.3 % for December, the forecast +0.2 % and the previous value +0.1 %.

 

Though the experts, predicting that data of this review will be considered in the nearest FRS decisions, did not hurry up with conclusions after the publication of data, however investors have regarded the report as the sign of fast end of toughening FRS monetary policy that promoted consumer moods.

 

As a result papers of Internet-companies Google Inc. and Yahoo Inc. have jumped that also promoted the market’s rise after Goldman Sachs published the optimistical forecast of the companies’ profits.

 

"The stock market has obviously received what it wanted. If FRS goes, and the prices for energy carriers are stabilized, it will remove two obstacles for the stock market in 2006", - Fifth Third Asset Management main analyst John Avgustin told.

And Mizuho Bank economist Glenn Haberbush says that Fed will increase the federal funds rate once again to 4.50 % then there will be the pause.

 

Despite the varied data, as a whole, investors have estimated positively the employment report.

As a result the American stock market was up on Friday though the basic indexes were closed below maximum of 4.5 years, which were fixed during rally of the first days of new year.

 

After a new rise in oil prices up to the highest mark from the middle of October, the oil companies have also strengthened their market positions. So, Exxon Mobil Corp papers have risen in price on 2% and Chevron Corp shares on 1.8 %.

Let's remind that February contracts for the American light oil have risen in price on $1.41 up to $64.20 per a barrel.

 

As a result Dow-Jones index of New York stock exchange has grown on 77.16 points and was closed at a level 10959.31. NASDAQ index has come up on 28.75 points and is at a level 2305.62. S&P 500 index has risen on 11.97 points and is at a level 1285.45.

Profitability of the US state obligations for 30 years has grown on 0.018 in comparison with the previous closing and makes up 4.565.

 

As a result we suggest to keep opened before purchase of Dow-Jones index futures from levels 10690. All earlier mentioned purposes of growth also hold good.

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