| USmarket Key stock indexes designated descending correction |
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11:47 04/25/2006 |
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At last, under pressure of the growing oil prices and also drop in the Japanese stock market, which affected negatively investors’ moods, the American share indexes have also designated correctional decrease.
Let's remind that already from the beginning of session the American shares began trade with reduction. Thus investors have practically ignored positive data of corporate reports.
So, Caterpillar net profit in the first quarter was up 45 % to $840 million, or $1.2 per a share from $581 million or 81 cents per a share a year earlier. Sales of the world's largest manufacturer of the heavy equipment have grown 13 % up to $8.74 billion. Experts forecast profit at a level $1.05 per a share and sales - at a level $8.7 billion. Demand for the heavy lorries used in mining, was doubled since 2004 because of increase in extraction of copper, coal and other minerals. And oil extraction from sand in Canada can lead to increase in lorries and spare parts sales up to $5 billion the nearest years. Chief Executive of the company James Owens expects that a great demand for mining, building and other kinds of equipment, and also engines will raise sales up to $50 billion nearest five years.
However, on the other hand, pressure upon the market strengthened after the publication of quarter results of the office equipment manufacturer Xerox Corp. So, Xerox Corp. profit in the first quarter, 2006 fell because of drop in equipment sales. And the net profit of the company before payment of dividends on senior stock made $200 million in the first quarter. However after payments the indicator dipped to $186 million, or 20 cents per a share against $196 million, or 20 cents per a share a year earlier. Let's notice that on the average experts forecast profit per a share at a rate of 21 cents. Sales the last quarter dipped to $3.695 billion from $3.771 billion a year ago at forecasts at a level of $3.806 billion. Xerox predicts that in the second quarter the profit per a share will make 22-24 cents whereas analysts expect 24 cents.
Let's also remind that the American share market was affected negatively by falling of Nikkei 225 index, which reached a level 16.914.40 for the first time for last month, having decreased at once on 2.81 %. Analysts state that the share market of Japan decreased on Monday on a background of the yen hike, which have complicated exporters’ positions.
As a result Dow-Jones index of New York stock exchange fell 19.85 points and is at a level 11327.60. NASDAQ index was down 13.49 points and is at a level 2329.37. S&P 500 index dropped 5.69 points and is at a level 1305.59. And 30-years U.S. Treasury notes’ yield fell 0.034 in comparison with the previous closing and makes 5.065.
We still recommend to wait for more significant correction of indexes. Only after its end there are possible new purchases of Dow-Jones and S&P 500 index futures. While it is necessary to remain outside of the market.
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