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Forex · News · USMarket

NEWS / USMarket

USmarket Key indexes made the next attempt of exit from a trading range

11:47 09/25/2006

On a background of uncertainty around that how much economists’ forecasts are justified that the economy can be slowed down much more strongly than the expectations and lead to drop in corporate profit, on Friday investors preferred a waiting position.

As a result, in spite of the fact that many analysts forecast new historical tops for DJIA and S&P 500 indexes, on 22-nd of September key stock indexes, having felt rigid resistance, traded in narrow ranges.

Drop in oil quotations continued to support the market. So, November oil future contracts were closed at a level $60,55 a barrel, having fallen in price $1,04 (-1,7 % )during the day time tenders.

Let's remind that the leader of growth on Friday were papers of media giant Tribune Company which added at once +6,05 %, having risen $1,94 up to a level $33,99 for a share.

Let's notice that the company owns newspapers Chicago Tribune, the Los Angeles Times, several telechannels and baseball team Chicago Cubs.

Impulse for growth of shares was the statement of the company’s representatives that it can be sold, divided or become private. The given opportunities were considered at a meeting of members of the board of directors on Thursday on September, 21st.

The second leader was Nike Inc. which papers added +4,73 %, or $3,90 up to $86,36 for a share after the profit and the proceeds of the company exceeded analysts’ expectations.

The quarter profit made $1,44 for a share, that is 3 cents better than the average forecast of analysts. The proceeds increased 9 % up to $4,19 billion, having surpassed the forecast of analysts of $4,17 billion. Orders of the future periods were up 6 %, having surpassed expected 5 %.

Shares of the company on granting the technical information for engineering and energy markets IHS Inc., which added +3,83 % after on Thursday evening the company informed financial results of last accounting quarter, were also among leaders.

The profit was up 21 % to 29 cents for a share and exceeded analysts’ expectations by 2 cents. Sales increased 19 % up to $139,9 million. In addition, the company raised the expected sales volume by results of a year.

As a result the company’s papers on very high volume rose in price $1,22 up to a mark $33,04 for a share.

After building company KB Home informed that the proceeds in the third fiscal quarter made $2,67 billion, having exceeded the analysts’ forecast of $2,6 billion, its shares on results of day grew $1,20 (+2,79 %) up to $44,25.

Thus results of proceeds will be announced after the termination of internal investigation on the account of options for shares. A rise in prices on public debts also supported purchases.

As a result Dow-Jones index of New York stock exchange fell 28.17 points and is at a level 11505.06. NASDAQ index was down 18.53 points and is at a level 2219.22. S&P 500 index dipped 3.56 points and is at a level 1314.47.

And 30-years US Treasury notes’ yield fell 0.046 in comparison with the previous closing and makes 4.738.

As a result key indexes already the third time approached the top border of a range. Its overcoming becomes a strong signal of continuation of growth of indexes. However, taking into account the general negative situation in the American economy, we recommend, being outside the market, to wait for down correction of indexes.

After end of correction there will be an opportunity for long-term purchase of futures for the stated indexes

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19/12 21.15
TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
USD/CAD1.00521.0056
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
GBP/CHF2.30702.3080
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