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Forex · News · USMarket

NEWS / USMarket

USmarket Before long days off key indexes remain steady

22:37 04/13/2006

And again good corporate data promote growth of key indexes. So, with opening of trading session the American shares on Wall Street grew on Wednesday.

 

The driver of growth was Circuit City Stores Inc. and Motorola papers. We shall remind that Circuit City Stores Inc shares. rose after the report showed that profit of the company exceeded forecasts in 4 quarter. So, at forecasts of profit growth of 77 cents per a share, profit of the company made 80 cents per a share.

And Motorola shares picked up after Bear Stearns experts had raised recommendations for shares of the company.

 

Moreover last data on trade balance of the USA for the February, shown drop in trade deficit, support indexes.

Let's remind that trade deficit made-65.7 billion dollars, at the forecast -67.5 billion dollars, and the previous value -68.5 billion dollars.

 

However, other data on the US Treasury Budget for March, opposite were weaker than the forecasts.

Let's remind that the budget deficit of the USA in March of current year made $85.47 billion against $71.21 billion in March, 2005. Experts forecast deficit to make $73 billion in March.

In February the budget deficit hit a record of $119.20 billion, and in January there was observed proficiency of $20.99 billion.

As a whole for first six months of current fiscal year the budget deficit made $302.99 billion against deficiency of $294.63 billion for the same period of the last fiscal year.

 

Analysts point put that the main negative factor of influence - the growing oil prices - has a little weakened the pressure. So, oil fell in price after the publication of data on oil stocks in the USA, which were better than the forecasts.

 

Let's remind that for the period from April, 1 till April, 7th Crude Inventories in the country were up 0.9 % and reached 346 million barrels that was a maximum for last 8 years. However, according to experts’ estimations significant drop in oil quotations is prevented by major factors of risk - a situation around oil deliveries from Iraq and Nigeria, and also an aggravation of a question of the nuclear program of Iran.

As a result after the publication of data on oil stocks in the USA yesterday cost of WTI oil futures with delivery in May fell $0.36 - to $68.62 for barrel. And on today morning oil traded in area of $68.35 for barrel.

 

As a result Dow-Jones index of New York stock exchange was up 40.34 points and was closed at a level 11129.97. NASDAQ index raised 4.33 points and is at a level 2314.68. S&P 500 index was up 1.55 points and is at a level 1288.12.

And 30-years U.S. Treasury notes’ yield grew 0.048 in comparison with the previous closing and makes 5.051.

 

Despite yesterday's growth of key stock indexes, we recommend while to keep a waiting position. The probability of a deepening of correction is still kept, and new purchases of indexes futures will be possible only after the end of correction.

 

 

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