Opening of trading session on Tuesday, on 29-th of August, did not forebode to the market anything optimistical - the publication of consumer confidence index, which dipped to 9 month minimum and for the first time since November of the last year it was below 100 points, did not forebode the next growth of key stock indexes.
Let's remind that value of August index made 99,6 points in comparison with 107 points a month ago. Analysts specify that the rise in prices on the raw goods leads to ascending pressure on expenses of manufacturers and leaves FRS concerned by that circumstance that manufacturers can begin to shift costs on consumers more actively that will lead to revision of the forecast of inflation by the central bank.
Besides FRS observes inflationary expectations of consumers, therefore, in spite of the fact that separate members expressed doubts in ability of economy to create new workplaces at the former rates and the majority considered improbable wage rise up to the end of year, data can become an alarm call for some FOMC "hawks".
However the situation in energy market, on the other hand, promoted investors’ optimism. We shall remind that oil cost failed below a psychological mark of $70 for barrel for the first time since April.
So, oil futures continued decrease on a background of obvious signs of delay of the strongest economy of the world, downcast by easing of physical strength of hurricane Ernesto up to a category of a tropical storm and change of its trajectory to oil-producing platforms of Gulf of Mexico.
Growth of key share indexes was also supported by the report of FRS last meeting which made a decision to fix a level of a discount rate at a mark of 5,25 %. We shall remind that the document showed that FOMC members basically hold the opinion to leave rates at this level if inflationary pressure is under the control.
As a result the report of FOMC meeting only confirmed words of the final statement of members the financial conclave from August, 8-thth. As a result, investors received one more confirmation that the cycle of policy firming of cost of credit resources was completed.
Among corporate news the main one became successes of companies of small capitalization of a medical and technological structure. So cost of papers of a small pharmaceutical company ViroPharma jumped up 13 % after news about successful clinical tests of a new preparation from a hepatites C.
Thus, papers of the research company StemCells, engaged in creation of new methods of treatment with application of stem cells, jumped up more than 7 % on the message on sale of the intellectual property connected with the company’s developments, in favour of one of pharmaceutical firms.
And quotations of nanotechnological fund Harris and Harris added about 4 % and approached an average 50 - day time price level.
Besides supported by news about joint advertising activity with popular searcher Google, papers of the main thing the Internet-auctioneer eBay added in the price 5,4 %.
As a result, Dow-Jones index of New-York stock exchange was up 17.93 points and was closed at a level 11369.94. NASDAQ index grew 11.60 points and is at a level 2172.30. S&P 500 index rose 2.50 points and is at a level 1304.28.
And 30-years US Treasury notes’ yield fell 0.004 in comparison with the previous closing and makes 4.930.
Despite new attempts of growth, we recommend to adhere to our former recommendations: to open long-term purchases of futures for Dow-Jones and S&P 500 indexes from the stated levels.
