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Forex · News · USMarket

NEWS / USMarket

USmarket Bull spirit of investors is still kept.

11:47 10/05/2006

The statistics, published yesterday, was sufficiently contradictory, and did not inspire investors to any active actions in the market.

 

Let's remind that the data reflecting activity in non-productive sector, calculated by Institute for Supply Management, pointed out delay of activity not only in industrial sector of the US economy, but also in service sector.

Thus positive separate components of the index offset a little the general negative of the report.

 

ISM service index in the USA made 52.9 for September, at the forecast 56.1, and the previous value 57.0.

Once again we remind that value of the indicator above 50 points testifies to rise of the sector, below - recession.

Thus the price index decreased to 56.7 points from 72.4 points. The index of new orders grew in service sphere in September up to 57.2 points from August value of 52.1 points.

And the employment index rose up to 53.6 points from 51.4 points. We notice that exactly this component of the report is usually considered as some kind of forecast indicator of the employment report, publishing on Friday.

 

And index of factory orders for August in the USA was at a level of analysts’ expectations, however its previous value was revised downwardly.

So, value of the parameter made 0.0 % for a month, at the forecast of 0.0 % for a month. Thus the previous value is revised from -0.6 % to -1.0 % for a month.

 

Among primary factors of support in stock market there is a proceeding falling of oil world prices, and drop in rates of precious metals.

Let's remind that yesterday oil quotations in New York fell below a mark of 58.00 dollars a barrel, having reached 8-month's levels. Thus the gold rate fell more than 20 dollars and reached a mark of 559.70 dollars for troy ounce.

 

The investors were supported in the given situation by words of FRS Chairman Bernanke, who told that housing market influences seriously on a condition of economy and decrease in business activity in this sector will most likely proceed.

Such comments assume the further pause in FRS decisions concerning change of the key interest rate.

 

From corporate news it is necessary to note continuation of growth of quotations of the world avia-producer Boeing company, risen 2,7 % on a background of easing of the basic competitor of European avia-concern Airbus.

Let's notice that since the beginning of week Boeing raised the capitalization already by 6,4 %.

 

And Ford papers, after published before information about 5 % September growth of auto-sales in the USA, even despite drop in their corporate rating from a level "it is better than the market" up to "at a level of the market", added yesterday at once 4 %.

 

However leaders of yesterday's growth were shares of the manufacturer of chemical substances which basis is metal - OM Group.

After the company raised the expected financial profit of the company for the third quarter up to a level $2,85 - $2,95 for a share, that is much more above analysts’ forecasts which consider that the company’s profit would be in area $1,86 for a share, OM Group papers grew at once +12,5 %, or $5,55 up to a level of a new historical maximum of $50,09 for a share on very high volume.

 

The second prize-winner of ascending movement yesterday became papers of the manufacturer of various components for air technics LMI Aerospace Inc., which after signing of the contract on $170 million with Gulfstream Aircraft for the period 5 years, +10 % hiked at once +10%, or $1,87 up to $20,26.

Thus analysts notice that LMI Aerospace Inc. net profit grows within three last quarters more than 100 % a quarter.

 

And the manufacturer of graphic chips Nvidiam which shares after experts specified that business of the company in 2007 could be better than forecasts of the majority of economists, were up +9,82 %, or $2,78 up to a level $31,08, was also among leaders.

 

As a result Dow-Jones index of New York stock exchange was up 122.06 points and is at a level 11849.40. NASDAQ index grew 44.20 points and is at a level 2287.85. S&P 500 index rose 15.62 points and is at a level 1349.73.

And 30-years US Treasury notes’ yield fell 0.032 in comparison with the previous closing and makes 4.721.

 

As a result opening of purchases at current levels now looks not important - the market "climbed" too high, and the probability of descending correction is great enough. While it is necessary to continue to remain outside the market.

 

 

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