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Forex · News · USMarket

NEWS / USMarket

USmarket Growth of stock indexes stopped, but quotations remain at the top of a range

11:47 09/28/2006

On a background of last contradictory data key stock indexes suspended their growth and were in a rigid trading range.

The reason of so limited dynamics of stock indexes on Wednesday, on 27-th of September, were data on durable orders in August. This release showed that the volume of orders decreases the second month in a row.

Let's remind that durable orders index in the USA made -0.5 % for August, at the forecast of +1.5 %, and the previous value-2.5 %.

Data on new home sales in August also were contradictory. So, in spite of the fact that these data exceeded forecasts a little, results of sales were rather weak.

So, the new home sales in the USA for August made 1050 thousand, at the forecast 1.020 thousand. And the previous value is revised from 1072 thousand up to 1009 thousand.

Another important release, from published yesterday, were data on stocks of mineral oil in the USA by the end of the last week. According to this report, crude oil stocks decreased slightly, but volumes of petroleum and distillates increased well.

The first reaction of oil market to information on change of stocks was falling of prices of oil futures, however then, as though having felt the importance of a psychological boundary of $60 a barrel, cost of strongly resold oil contracts jumped upwardly more than 3 %.

As a result November contract on New York commodity exchange grew $1,95 during trading session, that made 3,2 %, and was closed at a level $62.96 a barrel. The minimum of trading session made $60,10 a barrel, and a maximum was at a mark $63.

Besides the further decrease in oil quotations is prevented by analysts’ forecasts about forthcoming drop in quotas on oil production by OPEC countries.

From corporate news it is necessary to allocate papers of the companies of oil-and-gas sector and separate representatives of various spheres of business.

So, shares of the companies concerning to oil-gas sector grew noticeably. Group of shares on processing and marketing of mineral oil added 2,1 %. Tesoro shares added $2,62 (+4,65 %) after Bank of America Securities raised the recommendation from "neutral" up to "to buy". Alon Energy USA shares were up $2,32 (+8,66 %) to $29,12 for a share.

Thus the shares of some companies integrated into the American oil-and-gas companies rose 2 %. And Marathon Oil papers grew $2,34 (+3,16 %) up to $76,32. And MarkWest Hydrocarbon shares added in price $1,18 (+4,47 %) and were closed at a level $27,55 for a share.

And quotations of papers of the companies of producers of oil-and-gas technics and equipment climbed 1,8 %. Baker Hughes shares rose $2,57 (+3,94 %) and were closed at $67,81 for a share. Dril-Quip shares added $2,12 (+3,25 %) and have finished day at a mark $67,40.

Another group of the companies specializing on recreational services for the companies of oil-and-gas sector, showed growth at a level of 1,7 %. Core Laboratories shares hiked $2,85 (+4,72 %). Schlumberger Limited shares grew $2,40 (+4,13 %).

As a result Dow-Jones index of New York stock exchange grew 19.85 points and was closed at a level 11689.24. NASDAQ index was up 2.05 points and is at a level 2263.39. S&P 500 index rose 0.25 point and is at a level 1336.59.

And 30-years US Treasury notes’ yield increased 0.021 in comparison with the previous closing and makes 4.733.

We recommend to keep position outside the market.

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