Despite the unexpectedly weak data on GDP growth in the USA for the 4 quarter of the last year, at support of positive corporate reports of companies Microsoft and Procter and Gamble, shares on Wall Street have opened with growth.
Let's remind that growth of gross domestic product made only 1.1 % against 4.1 % in the 3 quarter whereas analysts waited a gain only on 2.8 %. The published value has appeared the lowest since 4 quarters 2002. Besides economists have noted that for 10 quarters in a row GDP growth exceeded 3 %.
The principal cause of so low value, in experts’ opinion, is essential reduction of state charges, consumers’ expenses, and also investment costs.
Besides experts pay attention to that the companies reduce investments into the equipment because of the high oil prices that cuts down opportunities for output expansion.
So very weak car sales at the end of the last year have also affected extremely negatively the preliminary value of gross domestic product.
And little bit later the key share indexes were supported by the publication of new home sales data in the USA. So, adjusted for seasonal variations, new home sales in the USA rose 2.9 % up to 1,269 million units in December, 2005 in comparison with November that exceeded the market’s expectations.
Let's remind that economists expected new home sales in the USA to make up 1.225 million units in December. New home sales make up about 15 % of the total home sales in the USA.
Thus the average home cost made $221.8 thousand in December that is 3.4 % below than a year earlier. And home sales, which cost exceeds $500 thousand, fell up to a minimum level since January, 2004.
Some experts assume, that recent decrease in mortgage rates and growth of household incomes will allow softening possible slowdown of development of the housing market in 2006.
As a whole, being on a wave of optimism because of the strong corporate reports of companies Microsoft and Procter and Gamble, investors have not noticed UAL Corp quarter results. We shall remind that UAL Corp. dead loss, owning the US second-largest airline United Airlines, made $17 billion in the fourth quarter of 2005 in connection with reorganization costs and a rise in fuel prices, Reuters agency informs, referring to the report of the company, published on Friday.
It is expected that United Airlines will leave a condition of bankruptcy the next month. In the fourth quarter of 2004 the dead loss of the company made $741 million.
Except for reorganization costs and special payments the loss of the company made $297 million. The operation loss of the company dipped to $182 million from $388 million the previous year.
The company is under protection of bankruptcy laws since December, 2002.
Analysts point out that in a view of an aggravation of a situation in the Near East after “Hamas” victory in Palestine, and also on a background rigid and a hard line of the USA concerning the nuclear program of Iran, risks of the further rise in oil prices have considerably increased that puts pressure upon world stock exchanges.
However, shares of the oil companies win from a rise in oil prices.
So, net profit of oil company Chevron Corp. raised up to $4.1 billion, or $1.86 per a share in 4 quarter against $3.4 billion, or $1.63 per a share in the similar period of the last year.
Let's remind that experts forecast profit at a level $1.89 per a share.
The proceeds made $53.79 billion against $42.69 billion a year earlier.
As a result Dow-Jones index of New York stock exchange has grown 110.38 points and is at a level 10919.85. NASDAQ index has risen 20.16 points and is at a level 2303.16. S&P 500 index has gone up 10.40 points and is at a level 1284.23.
Profitability of the US state obligations for 30 years has fallen 0.023 in comparison with the previous closing and makes 4.680.
Thus it becomes obvious that now growth of the key stock markets depends in a greater degree on the reporting. Therefore we suggest keeping purchases of Dow-Jones index futures. The purposes of growth, mentioned earlier, hold good.
