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Forex · News · USMarket

NEWS / USMarket

USmarket Last week finished with successful attempt of key indexes rise

11:47 03/13/2006

On a background of contradictory data of the US labor market survey key stock indexes opened varied.

 

Let's remind that on the one hand, nonfarm payrolls in economy were up 243.000 in February against growth on 170.000 a month earlier. Experts forecast that the gain in February would make up from 200.000 to 220.000.

However, on the other hand, the unemployment rate rose up to 4.8 % in February from 4.7 % in January. Thus analysts forecast unemployment at a level of 4.7 %. Besides nonfarm payrolls data for January have been revised downwardly from 193.000.

 

But the investors’ positive mood prevailed - labor market data have strengthened expectations of investors that corporate profits will continue to grow on of economic force.

News that the Internet-shop Amazon.com negotiates with the Hollywood studios for creation of the service, allowing downloading of movies and TV through the Internet have also been apprehended positively.

 

Moreover, key stock indexes were maintained additionally by drop in oil prices. We shall remind that significant support to oil quotations is rendered with geopolitical intensity. Since the beginning of this year, on a background of deterioration of a situation around large oil-producing countries - Iran and Nigeria, oil has started to rise in price actively. However, later oil started to become cheaper mainly because of growth of mineral oil stocks in the USA.

As a result today the average price of a barrel of oil in 2006 makes $63.42. Thus experts forecast that drop in oil quotations will proceed, and by 2010 the price will decrease more than $17 for barrel and will cost approximately $42.92 for WTI, and $39.75 - for Brent.

 

As a result Dow-Jones index of New York stock exchange was up 104.06 points and was closed at a level 11076.34. NASDAQ index was up 12.32 points and is at a level 2262.04. S&P 500 index was up 9.35 points and is at a level 1281.58.

And the US 30-years state bonds yield rose on 0.025 in comparison with the previous closing and makes 4.742.

 

We recommend keeping purchases of Dow-Jones index futures, opened earlier from levels 10690. The purposes of growth of the index while hold good.

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