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Forex · News · USMarket

NEWS / USMarket

USmarket First day after long days off trade is under the badge of correction

15:42 01/18/2006

The last rise in prices keeps influencing negatively on the world stock markets. Moreover some rating agencies have lowered ratings of some companies that led to significant drop in cost of their shares.

 

As a result on this background on Tuesday the shares on Wall Street opened in a minus. Despite this the short-term forecast for world economics is still positive in a view of stability of the American economy despite the last year's shocks, and also in a view of restoration of the Japanese economy, and some signs of improvement of prospects of the European economic rise.

 

Nevertheless, some risks for economic growth are still kept, including sharper than expected slowdown of growth in the US housing sector and the renewed rise in oil price.

 

"Uncertainty with a situation in Iran has forced us to return to the forecast assuming the oil prices at a level of $70 for barrel", - Colton Bryan, the senior head of a department of the state ratings has noted.

 

Thus some experts assume that slowdown of the world economic growth in 2006-2007 can be greater than expected.

 

Let's remind that Merrill Lynch lowered AMD estimation up to "to sell" from “neutral”. Thus after end of a regular trading session on Wall Street Intel corporation published the quarter report informing that its profit rose 16%.

The largest manufacturer of microprocessors has informed that for the accounting period earned 2.5 billion dollars or 40 cents per a share. At the same time of the last year the company earned 2.1 billion dollars or 33 cents per a share.

Sales have grown on 6 % UP TO 10.2 billion dollars. However economists expected better results, forecasting sales at a level of 10.56 billion dollars. They also supposed that the company would earn 43 cents per a share.

As a result Intel paper have dropped 4 % at the electronic tenders.

 

Also after the end of a regular trading session, Yahoo company published the results for 4 quarter informing that earned 683 million dollars or 46 cents per a share.

During the same period a year ago Yahoo earnings made 373 million dollars or 25 cents per a share. Except for some costs and option spending the company earned 247 million dollars or 16 cents per a share in comparison with 187 million and 13 cents per a share a year ago.

However the results were not in line with the expectations as economists expected 17 cents per a share. The income, except for payments to distributive partners, has grown on 36% up to 1.07 billion dollars that is in line with the expectations.

As a result at the electronic tenders Yahoo shares have dipped on 9 %.

 

After the information that Boston Scientific has increased the size of the offer up to $27 billion Guidant growing papers could not hold key indexes reduction.

 

As a result Dow-Jones index of New York stock exchange has fallen on 63.55 points and was closed at a level 10896.32. NASDAQ index has gone down 14.35 points and is at a level 2302.69. S&P 500 index has come off 4.68 points and is at a level 1282.93.

Profitability of the US state obligations for 30 years has fallen on 0.014 in comparison with the previous closing and makes up 4.511.

 

We recommend keeping the purchases of Dow-Jones index futures opened from a level of 10690. The purposes of growth, mentioned in the previous reviews, also hold good.

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