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Forex · News · USMarket

NEWS / USMarket

USmarket Strong corporate reports keep indexes from correction

11:47 05/03/2006

On a background of strong quarter results and also at support of growing shares key share indexes grew at opening of trading session on Tuesday.

 

Let's notice that papers oil-producing companies started to grow after the next rise in oil prices. As a result the shares of the world's largest oil company Exxon Mobil Corp. rose in price on 2,0% and quotations of Chevron Corp papers rose 2,7 %.

 

Let's remind that oil prices hit $74 for barrel at tenders on Tuesday right after Iran informed that it has enriched uranium up to a level close to use in reactors of the atomic power station.

Investors’ anxiety increased after the representative of the president’s administration declared that the USA would try to enlist the support of allies for force pressure upon Iran because of its works in nuclear area.

Moreover oil traders are pushed to purchases by messages on an opportunity of new hurricanes this season, and also a situation in Nigeria - the largest oil exporter in Africa, where because of militants’ diversions the quarter of oil-producing capacities stands idle.

As a result June futures for the American light oil grew $0,91 to $74,61 for barrel, and June futures for Brent oil rose $0,75 up to $74,64 for barrel.

 

The market was supported significantly to by Hilton Hotels Corp quarter results. We shall remind that Hilton Hotels Corp. profit on results of the first quarter of 2006 raised owing to active demand for hotel rooms and the limited growth of the offer that allowed to continue increase of residing cost in the majority of the large markets, Reuters informed, referring to the company’s report, released on Tuesday.

As a result Hilton got net profit at a rate of $104 million, or $0,26 per a share against $64 million, or $0,16 per a share a year ago.

Let's notice that experts forecast net profit at a rate of $0,18 per a share. Hilton proceeds in the first quarter were up 41% y/y and reached $1,52 billion at the analysts’ forecast of $1,050 billion.

 

The indexes were also supported to by Verizon Communications Inc quarter results. We shall remind that Verizon Communications Inc. profit, one of the largest world telephone companies, decreased on results of the first quarter of 2006 due to merges costs, however the proceeds increased owing to growth of divisions of wireless communications, Reuters informs, referring to the company’s report.

Verizon, having such companies as Verizon Wireless and Vodafone Group Plc, got profit at a rate of $1,63 billion, or $0,56 per a share for the accounting period against $1,73 billion, or $0,63 per a share a year ago.

Except for special payments the profit made $0,60 per a share at analysts’ forecast of $0,59 per a share. The proceeds grew up to $22,74 billion against $18,18 billion in 2005 at the forecast of $22,989 billion.

 

As a result Dow-Jones index of New York stock exchange was up 69.55 points and is at a level 11412.84. NASDAQ index grew 2.75 points and is at a level 2307.54. S&P 500 index rose 6.44 points and is at a level 1311.63.

And 30-years U.S. Treasury notes’ yield fell 0.025 in comparison with the previous closing and makes 5.202.

 

We still recommend to adhere to our previous recommendations: being outside the market to wait for realization of descending correction of key stock indexes.

After end of this correction there are possible new purchases of futures for Dow-Jones and S&P 500 indexes.

 

 

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TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
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