USmarket Drop in oil quotations supports stock indexes
16:12 02/28/2006

On a background of the optimism, caused by reduction of oil quotations, shares on Wall Street opened with growth on Monday. The market is additionally supported by the news about mergers and take-overs.

Let's remind that in the market there was information that British National Grid was going to buy KeySpan for $7.3, and Armor Holdings wished to purchase the manufacturer of military lorries Stewart and Stevenson Services for $755 million.

 

Key stock indexes are also sustained by, the better than it was expected, financial results of the companies.

So, profit of US second-largest network of sales of the house repair goods Lowe's Cos. Inc. rose in the fourth quarter of 2005 owing to high sales volumes.

And American telecommunication company Verizon Communications Inc. informed that its profit in 2006 would be kept at a level of 2005 except for the payments connected with MCI purchase.

 

And Newmont quarter results could not affect investors’ moods. We shall remind that the net profit of the world leader of gold mining Newmont Mining Corp. fell to $62 million, or $0.14 per a share in 4 quarter 2005 against $190 million, or $0.42 per a share in 4 quarter 2004.

Experts expected profit at a rate of $0.34 per a share. The proceeds in 4 quarter made $1.305 billion against $1.198 billion a year earlier. Gold sales in 4 quarter made 2.4 million troy ounces.

 

However now a primary factor for the market is a situation in energy market. Experts are sure of that the further drop in oil prices will cause growth in the share market.

So, on Monday on a background of the successful settlement of a situation with explosions in Saudi Arabia, oil quotations sharply dipped. We shall remind that on Friday of the prices hiked after messages on attacks of terrorists, but the Arabian authorities could take a situation under the control therefore deliveries were not stopped.

As a result on Monday the April future for oil WTI fell in price on $1.91 (3 %) to $61 for barrel, and on today morning drop in prices has proceeded. Now the tenders are in area $60.60 for barrel.

 

As a result Dow-Jones index of New York stock exchange was up 35.70 points and was closed at a level 11097.55. NASDAQ index was up 20.14 points and is at a level 2307.18. S&P 500 index was up 4.69 points and is at a level 1294.12.

And US 30-years state bond yields grew 0.030 in comparison with the previous closing and makes 4.545.

 

We recommend keeping earlier opened purchases of Dow-Jones index futures. Previously planned purposes of growth hold good.

 


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