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Forex · News · USMarket

NEWS / USMarket

USmarket Supported by good quarterly reports key stock indexes remain stable

11:47 02/17/2006

On a background of Hewlett-Packard and Applied Materials positive quarter results shares on Wall Street opened with growth. Indexes are also supported by drop in oil prices that is good news to big energy consumers, whose shares got additional support.

 

In spite of the fact that oil rose in price on Thursday after falling on Wednesday, caused by the publication of stocks data in the USA, investors keep a positive mood.

Let's remind that March futures for oil WTI were up 81 cents, or 1.4 % to $58.46 per a barrel. However analysts consider yesterday's growth as a technical correction, they are sure of that because OPEC promises not to reduce oil production.

As a result experts of the fuel market believe that if OPEC does not reduce production oil can soon fall in price up to $50 per a barrel. Investors direct their attention to the next meeting of OPEC oil ministers, which takes place on March, 8th.

 

Key indexes were also sustained by the statements of FRS Head Bernanke on Wednesday and on Thursday. We shall remind that Bernanke calmed investors, having declared that the risks connected with Exchequer bonds sale by the foreign Central Banks are strongly exaggerated. And to response to last statement of the representative of Syria central bank Ben Bernanke noted that he had not yet heard about any plans of other foreign Central Banks to change dollar reserves.

However, in FRS head’s opinion even if it happens it will influence insignificantly on the markets of the USA due to their high liquidity.

During yesterday's statement FRS Head reiterated what he told on Wednesday – FRS decisions on rates will be taken in view of the last macroeconomic data.

And Ben Bernanke again noticed that by the historical criterion, current rates are still close to a minimum.

 

And yesterday's economic data were mixed. So, investors consider weak data on jobless claims in the USA for a week on February, 11th which made 297.000, at the forecast 285.000. And previous data have been revised from 277.000 up to 278.000.

Thus the average number of new jobless claims for four weeks on February, 11th increased up to 283.000 from 276.750 a week earlier. Preliminary value of the last week made 276.500.

The total number of jobless in the USA for February, 4th made 2.511 million in comparison with 2.550 million a week earlier. It was informed earlier on 2.557 million people.

 

Export and import prices also support expectations of the further FRS rate rise. We shall remind that import prices in the USA were up 1.3 % m/m in January whereas experts expected growth on 0.9 % m/m. In December import price was down 0.1 % m/m.

And export prices were up 0.7 % in January to December. Thus analysts forecast growth on 0.2%.

 

Yesterday Philadelphia Federal Reserve index of business sentiment in February was the biggest surprise. We shall notice that this important indicator, which reflects business situation in an industrial branch, 1/6 of the US economic activity fall to the share of which, allows the economists to predict growth of ISM index at a national level in February.

So, the value of the indicator rose up to 15.4 points in February, 2006 from 3.3 points in January, 2006. And, on economists’ forecasts the index might have grown up to 10.0 points.

The new orders index, being the indicator of the future rise, raised up to 12.5 points in February from 11.1 points in January, the price index reduced to 30.5 points from 44.9 points. And the employment index dropped a little in February to 11.3 points from 11.7 points.

 

As a result Dow-Jones index of New York stock exchange was up 61.71 points and is at a level 11120.68. NASDAQ index was up 18.20 points and is at a level 2294.63. S&P 500 index was up 9.38 points and is at a level 1289.38.

Profitability of the US state obligations for 30 years was up 0.002 in comparison with the previous closing and makes 4.577.

 

We still recommend keeping purchases of Dows-Jones index futures, opened from a level 10690. The purposes of growth of the index hold good. Protective stop should be placed in "make-out".

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