On a background of activization of rumors about fast end of a cycle of FRS monetary policy firming shares on Wall Street have begun trading week with little growth.

Key stock indexes were additionally supported by quarterly reports of profit of two large American companies. So, on results of the first quarter Citigroup Inc. net profit was up 4 % on a background of growth of proceeds of transactions outside the USA.

And on results of the first quarter Wachovia Corp. profit grew owing to growth of commission charges.

The investors’ optimism strengthened after the publication of data on Net Foreign Purchases of the American assets (TICS data) in February. So value of the inidcator made 86.9 billion dollars, at the forecast 65.5 billion dollars, and the previous value 69.1 billion dollars.

It is obvious that Net Foreign Purchases to the USA exceeds deficit of current account of the USA.

However, on the other hand, pressure upon the stock market from growing oil quotations and the general strengthening of geopolitical risks keeps rising.

So, correspondence dispute of the aggressive President of Iran Makhmud Akhmadi Nijad, declaring that Iran is not going to give up its nuclear program, with the US President Adviser Candolisa Rice, not excluding force methods of influence, squeeze oil and precious metals prices.

As a result yesterday oil price in New York reached record-breaking high mark of 70.85 dollars for barrel. The gold rate reached a mark of 615.00 dollars for troy ounce, the rate of silver has grown up to a level of 13.67 dollars for troy ounce.

Pressure upon key indexes strengthened after the publication of data of NY Empire State Index  in April. We shall remind that value of the indicator made 15.18 points in April in comparison with the revised downwardly 29.03 points in March. These data have been revised, earlier it was informed that in March the index made 31.16 points, and experts forecast drop in the index in April only to 24.50 points.

Thus the new orders index made 14.11 points in April in comparison with 26.99 points in March. And the employment index made 17.41 points against 20.08 points in March.

Negative influence increased in the market after the statements of Chicago FRB President Michael Moskou, who declared that because of risk of inflation speed-up the Federal reserve system of the USA should remain "vigilant", and also reply of FRS Head Ben Bernanke to inquiry concerning a monetary policy of one of the Congressmen. We shall remind, that Ben Bernanke has noticed that if FRS adheres to suitable policy the rise in oil prices will not render long inflationary influence on economy.

Both these comments assume continuation of a cycle of FRS rates increase

As a result Dow-Jones index of New York stock exchange was down 63.87 points and was closed at a level 11073.78. NASDAQ index was down 14.95 points and is at a level 2311.16. S&P 500 index fell 3.80 points and is at a level 1285.32.

And 30-years U.S. Treasury notes’ yield was down 0.029 in comparison with the previous closing and makes 5.078.

We recommend while to keep a waiting position. Continuation of correction of key stock indexes is not excluded.