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Forex · News · USMarket

NEWS / USMarket

USmarket Market is extremely volatile, investors do not hurry up to enter market

11:47 05/24/2006

The American shares on Wall Street hiked since the beginning of trading session. We shall remind that drivers of growth were papers of the Internet-companies, first of all Yahoo, Google and eBay.

Shares began to grow after rumors about possible Yahoo and eBay merge, which rose more than 1 % after that.

 

However the main drivers of yesterday's growth were papers of the companies connected with investigation and uranium extraction Cameco and Fronteer Development Group. On a background of global growth of energy cost there is also a good situation for the given companies.

So, Cameco shares rose 3,3 %, and Fronteer papers jumped up 6,2 %.

 

The companies specializing on a solar energy, have received a powerful positive impulse. We shall remind that last two weeks shares of these companies entered area of high oversale.

So, SunPower papers, which stock of orders on installation of solar batteries grows recently in a geometrical progression, hiked 4,2 %, having been above $30.

 

Another leader of growth became WorldGate company, which day time shares’ rise made 4 %. We shall notice that quotations of cost of WorldGate shares after several unsuccessful attempts overcame psychological height of $2, which is key resistance level, and fixed at tops since the beginning of a year.

 

Later the situation has started to change: on a background of absence of economic news and low activity on corporate front, and also before the issue of one of the most important indicators of inflation after consumer price index, investors preferred to close long-term purchases.

Besides active sales the last one and a half hour of trading session was caused by anxiety around possible continuation of growth of interest rates and energy prices.

Thus natural growth of quotations of the oil-producing and raw companies continued on a background of rising oil and metals.

 

As a result Dow-Jones index of New York stock exchange decreased 0.40 point and is practically at a level of opening of trading session 11125.73. NASDAQ index fell 8.46 points and is at a level of 2164.40. S&P 500 index dipped 2.42 points and is at a level 1259.65.

And 30-year US Treasury notes’ yield grew 0.023 in comparison with the previous closing and makes 5.154.

 

We recommend to wait for continuations of correction of key indexes, being outside the market. After its end there are possible new long-term purchases of Dow-Jones and S&P 500 indexes futures.

 

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