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Forex · News · USMarket

NEWS / USMarket

USmarket Yesterday stock indexes kept down

19:05 05/19/2006

The American shares on Wall Street began the regular session on Thursday with increase. After on the eve the stock exchange market fell, having shown the greatest falling during one trading session since the beginning of this year, investors have considered shares excessively oversold.

 

Growing papers of the manufacturer of personal computers Hewlett-Packard and shares of the US largest network of department stores Sears Holdings Corp supported key indexes at the beginning of session.

 

Shares of companies BEA Systems and Sears Holdings Corp. started to rise right after publication of quarterly reports. So, Sears Holdings Corp. Has finished the first quarter with net profit at a rate of 1.14 dollars per a share due to reduction of expenses. Thus experts estimated the company’s profit at a level of 64 cents per a share.

As a result of the company’s shares increased 16 dollars and 60 cents up to 154.35.

 

And BEA Systems net profit in the first quarter was up 3 % and made 12 cents per a share. We shall remind that economists forecast only 10 cents per a share. As a result BEA Systems shares added in cost 98 cents, having risen up to 12.84 dollars.

 

The reason of growth of Hewlett-Packard shares became investors’ positive expectation that the second-largest manufacturer of personal computers in the third quarter will get profits above experts’ expectations.

 

Then the situation in the stock market began to vary. Economic data began to put pressure upon key indexes. So, the jobless claims in the USA for a week by May, 13th made 367 thousand at the forecast 318 thousand. And the previous value is revised from 324 thousand to 325 thousand. The indicator was not only much worse than the forecast, but also reached a maximum level for the last half of a year.

 

And the index of leading indicators in the USA for April instead of expected growth was in negative area. Thus that fact that the previous value has been revised upwardly, has remained practically ignored.

Let's remind that at the forecast of +0.2 %, value of the indicator made -0.1 %. And the previous value is revised from -0.1 % up to +0.4 %.

 

Philadelphia Fed business report, which exceeded considerably economists’ forecasts, could not support decreasing share indexes.

So, Philadelphia Fed index made 14.4 for May, at the forecast 12.2, and the previous value 13.2.

Let's notice that key components of the report were weaker. So, new orders index decreased to 2.7 against 12.2 earlier. The component of deliveries fell to 11.7 against 19 earlier. The employment component made 1.1 points against 21.7 earlier. And unfinished orders index made -2.2 against 7 points earlier.

 

As a result Dow-Jones index of New York stock exchange fell 77.32 points and was closed at a level 11128.29. NASDAQ index dropped 15.48 points and is at a level 2180.32. S&P 500 index was down 8.51 points and is at a level 1261.81.

And 30-year US Treasury notes” yield fell 0.094 in comparison with the previous closing and makes 5.180.

 

We recommend to wait for the end of correction of Dow-Jones and S&P 500indexes. Only after correction finishes, there are possible purchases of futures for the mentioned indexes. While it is necessary to keep a waiting position.

 

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