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Forex · News · USMarket

NEWS / USMarket

USmarket Under a pressure of positive corporate reports stock indexes again up

11:47 01/27/2006

On a background of unexpectedly good durable orders data and Caterpillar Inc. positive corporate results shares on Wall Street opened with growth on Thursday.

 

Let's remind that durable orders grew 1.3 % m/m in December. Thus the November gain has been revised up to 5.4 % from 4.4 %.

Except for transport the orders volume rose 0.9 % in December in comparison with growth of 0.6 % in November.

Investments into the equipment will allow sustaining economic growth this year. It is obvious that the companies invest in manufacture to raise their profitability.

After such data many economists will likely revise their forecasts to increase under the US gross domestic product.

 

General Motors weak data could not reduce investors’ optimism. We shall remind that General Motors dead loss raised up to $4.8 billion, or $8.45 per a share in 4 quarter of the last year against the loss of $99 million, or 18 cents per a share the same period in 2004.

The annual loss indicator has made $8.6 billion. Except for lump sum item of expenses GM loss made $1.2 billion, or $2.09 per  a share in the fourth quarter.

Experts supposed the loss of 12 cents. The proceeds made $51.2 billion against $51.4 billion a year earlier. Lump sum expenses have led to loss of $3.6 billion, or $6.36 per a share.

The company is going to sell a control stock of GMAC financial division for restoration of an investment rating.

 

And AT&T Inc. finished the 4 quarter of the last year with profit at a rate of $1.66 billion, or $0.46 per a share. Except for lump sum expenses the profit made $1.71 billion, or $0.48 per a share.

The same time of the last year SBC profit made $688 million, or $0.21 per a share.

The company was formed after SBC Communications purchase of AT&T Corp. in November. The consolidated proceeds made $12.97 billion.

 

Key stock indexes have also been supported by quarter results of industrial and space conglomerate Honeywell International Inc., which profit was doubled in the fourth quarter of 2005 owing to a great demand for accessories for planes and service, Reuters agency informs referring to the company’s report.

The company’s net profit rose up to $520 million, or $0.62 per a share from $253 million, or $0.30 per a share the same period of the last year. Analysts waited for the profit to grow up to $0.61 per a share.

The proceeds raised 10% up to $7.28 billion from $6.64 billion at Wall Street forecast at a level of $7.22 billion.

Honeywell shares picked up almost 2.0 % this year at drop in Standard and Poor's industrial subindex of 1.2 %.

 

Besides the indexes were supported by yesterday's jobless claims data. So as the Department of Labor informed the initial jobless claims went up to 283.000 for a week, ended on January, 21st, 2005, from 272.000 a week earlier.

Thus the last week data have been revised 1 000 more up to 71.000 claims.

Let's notice that experts predicted on the basis of initial data that the initial jobless claims would grow up to 305.000.

The average number of initial jobless claims went down to 288.750 for four weeks by January, 21st from 299.500.

It was originally informed on 299.000 claims. As a result the current indicator became the lowest since July, 2000.

As a result the total number of jobless in the USA increased 53.000 up to 2,58 million for January, 14th.

As a whole these data testify to the further growth of the US labor market, and the companies prefer not only to keep the skilled employees, but also to invite new ones expecting increase in consumers’ activity.

 

As a result Dow-Jones index of New York stock exchange has grown 99.73 points and was closed at a level 10809.47. NASDAQ index has climbed 22.35 points and is at a level 2283.00. S&P 500 index has risen on 9.15 points and is at a level 1273.83.

Profitability of the US state obligations for 30 years has picked up  0.048 in comparison with the previous closing and makes 4.703.

 

As a result we recommend to keep purchases of Dows-Jones index futures, opened earlier from a level 10690. The purposes of growth of the index also hold good.

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