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Forex · News · USMarket

NEWS / USMarket

USmarket Investors do not hurry with purchases of shares, expecting new data

11:47 08/23/2006

On a background of absence of macroeconomic news, and also uncertainty around the Iranian nuclear problem, on Tuesday American stock indexes continued to trade in narrow trading ranges.

 

Let's remind that the answer of Iran, which on the eve was given to ambassadors of six countries of the European Union and Switzerland, representing interests of the USA while is kept in a secret and its detail while are unknown.

According to main Iranian representative Ali Laridzhani, Teheran is ready to begin "serious negotiations" for the settlement of the crisis. However it is not known yet, whether the answer of Iran will satisfy the United Nations.

Let's remind that earlier the Security Council demanded that Teheran stopped nuclear development till August, 31st, otherwise promising to assume sanctions to the state.

Investors are afraid of that the Iranian crisis can lead to faults with oil supply from Iran which volume makes more than two millions barrels a day.

On this background oil futures rose in price on results of Tuesday, having continued growth the third trading session in a row. So, the contract in NYMEX added 18 cents, having closed at a mark $72,63 for barrel.

 

Despite the investors’ anxiety caused by these events, and also the current indicators confirming delay of economic growth, indexes are supported by the general optimism of players after recent week rise.

 

It is remarkable that growth of shares of some companies could not shake limited dynamics of stock indexes. So, yesterday XM Satellite Radio papers jumped up at once +20,28 %, or $2,28 up to $13,52, that became the best parameter among shares entering Nasdaq100 index.

The company received serious updating from investment bank Bear Stearns which raised its recommendation on the company from "worse than the market" up to "better than the market".

The broker company told that at present the price of the share reflects the worst script of events, which in the near future can change on the favorable script, owing to a number of expected positive events.

Papers of main competitor Sirius Satellite Radio added +3,60 %, or $0,14 up to $4,03 for a share.

 

The manufacturer of chips Advanced Micro Devices, which added +6,32 %, or $1,48 up to $24,88, also showed growth of its shares. The company declared that by 2009 plans to grasp 30 % of the market of computer processors.

Experts of investment bank Bear Stearns optimistically estimate plans of the company that is confirmed by increase of a rating up to "better than the market" from "at a level of the market".

 

Shares of the developer of computer games Electronic Art also showed rise, having risen on 1,38 %, or $0,69 on results of day, and having finished trade at a level $50,68.

The reason of their growth became information that Piper Jaffray company, engaged in analytical researches of the stock market, informed that game "Madden NFL ‘ 07" will b be out of print of 6,9 - 7,1 million, that is equal to annual proceeds from sales of $300 million.

 

As a result Dow-Jones index of New York stock exchange fell 5.21 points and was closed at a level 11339.84. NASDAQ index was up 2.27 points and is at a level 2150.02. S&P 500 index rose 1.29 points and is at a level 1298.81.

And 30-years US Treasury notes’ yield fell 0.014 in comparison with the previous closing and makes 4.950.

 

Our last recommendations hold good: it is necessary to buy futures for Dow-Jones and S&P 500  indexes after end of descending correction. As a level of opening of purchases should be considered marks 11200 and 1280 accordingly.

 

 

 

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