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Forex · News · USMarket

NEWS / USMarket

USmarket Indexes were consolidated in a range, however probability of continuation of their falling is very great

11:47 05/23/2006

Result of yesterday's tenders on Wall Street became ???? in key indexes on a background of investors' anxiety about growth of inflation in the majority of the developed countries.

 

Exception of decreasing shares were papers of Internet-searcher Yahoo, the second Internet resource in the world. We shall remind that the reason of growth of these shares became an article in financial-analytical magazine Barron's where it was stated that Yahoo papers were strongly underestimated.

Authors of the article consider that the fair price for Yahoo shares is in a range $40-50. As a result right after publications of the magazine, despite the total falling of the market, Yahoo papers hiked 3 % therefore they again fixed above $30.

 

However negative moods prevailed among investors that as a result has led to that during yesterday's session key share indexes lost more than 1 % to the middle of the day. And only the last hour of the tenders interest to purchases renewed that, in opinion of some experts can specify approach of the end of massive sales in the market.

 

There were at once some companies among leaders of decrease. First, it is papers of New York stock exchange, which started recently to trade on NYSE:NYX itself. They lost in the price about 3 % after it proposed purchase of the European electronic stock exchange Euronext.

Let's remind that NYSE as offered $10,2 billion for control stock of European analogue NASDAQ. Another NYSE competitor in fight for Euronext is Frankfurt stock exchange Deutsche Boerse.

 

The shares of a network of shops on building and finishing materials sale Lowe's company, which finished yesterday with drop in quotations of its papers of almost 5 %, lost in the price even more.

It is remarkable that on the eve Lowe’s published the quarter balance favorable for itself, which showed 44 % growth of corporate profit in the I quarter of this year then at opening of the market its papers grew more than 3 % in the morning.

However then investors, being afraid of that cooling of the building market will lead to reduction of Lowe’s profits in second half of a year, passed to mass profit-taking on this paper.

 

As a result Dow-Jones index of New York stock exchange fell 18.73 points and was closed at a level 11125.33. NASDAQ index dipped 21.03 points and is at a level 2172.86. S&P 500 index was down 4.97 points and is at a level 1262.06.

And 30-year US Treasury notes’ yield dropped 0.006 in comparison with the previous closing and makes 5.131.

 

As the probability of the further decline of quotations of key indexes is still kept, we recommend keep a waiting position. After the end of correction, at presence of signals of growth, purchases of futures for Dow-Jones and S&P 500 indexes will be possible.

 

 

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