On a background of Cisco Systems positive results shares on Wall Street opened with growth. We shall remind that the company’s profit exceeded the experts’ forecasts.
So, Cisco Systems Inc. net profit made $1.38 billion, or 22 cents per a share in the 2 quarter of a current fiscal year against $1.4 billion, or 21 cents per a share a year earlier.
Except for special real account the profit per a share made 26 cents against the forecast of analysts of 25 cents. The profit exceeded forecasts owing to growth of sales of the network equipment.
The proceeds reached $6.6 billion, that is 9.3 % above the indicator of the last year.
"Cisco positive forecast for the second half-year found the positive response in the market ", - says Paul Mendelson from Windham Financial Services.
PepsiCo Inc. quarter results were also positive - at a level of experts’ forecasts. We shall remind that the profit of the second-largest American manufacturer of soft drinks grew in the fourth quarter of 2005 owing to growth of incomes, which offset increase in costs.
The company’s profit in October-December made $1.1 billion, or 65 cents per a share against $985 million, or 58 cents per a share a year earlier.
As a result the indicator was completely in line with the average forecast of analysts. PepsiCo net profits reached $10.096 billion in the fourth quarter against $8.803 billion a year earlier.
Economists forecast that the proceeds would make up $9,505 billion.
In 2006 PepsiCo profit per a share will not be less than $2.93, that corresponds with experts’ expectations.
Experts connect the growth of PepsiCo sales volume with rise in realization in the markets of Russia and China. Besides the company broadened the assortment of output goods, having added Tropicana juices and Cheetos snacks.
PepsiCo increases its share of the market, offering mineral water, juices and snacks to consumers. It promotes faster than Coca-Cola’s growth of proceeds as 80 % of the income of the largest competitor fall to the share of sales of soda water.
Investors are also inspired by new prospects of mergers and take-overs. So, Pfizer informed that can sell or choose divisions of consumer goods.
The statement of FRS former chairman Greenspan on the soiree, organized by Lehman Brothers company, put some pressure on the market.
Let's remind that FRS former head told that the American economy is in a good condition, at the same time an estimation of a possible maximum of the interest rate level in the USA, prevailing in the market, in a current business cycle is, probably, underestimated.
The key stock indexes were sustained by oil, which fell in price after data on stocks in the USA. We shall remind that despite a little decrease in oil stocks oil quotations went down on Wednesday on a background of growth of petroleum stocks in the USA.
Oil stocks in the USA for a week, ended on February, 3rd, were down 300.000 barrels to 320.7 million thus petroleum stocks were up 4.3 million barrels to 223.3 million. Analytics forecast growth of oil stocks on 300.000 barrels, petroleum - on 1.9 million barrels.
As a result March futures for oil WTI dropped in price on 54 cents up to $62.55 for barrel, and on today morning oil traded in area of $62.85 for barrel.
As a result Dow-Jones index of New York stock exchange has grown on 108.86 points and was closed at a level 10858.62. NASDAQ index has raised on 22.02 points and is at a level 2266.98. S&P 500 index has risen on 10.87 points and is at a level 1265.65.
And profitability of the US state obligations for 30 years has grown on 0.025 in comparison with the previous closing and makes 4.681.
We recommend keeping earlier opened purchases of Dow-Jones index futures. The purposes of growth, mentioned in the previous comments, also hold good.
