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Forex · News · USMarket

NEWS / USMarket

USmarket Disturbed by the accident in Manhattan and weak Alcoa report stock market while refuses to continue its growth.

11:47 10/12/2006

Made once again attempt of renewal of growth stock market finished session with drop. An occasion to decrease this time became disappointing data of the quarter report of aluminium giant Alcoa, and also the tragical case which happened soon after the beginning of the tenders.

 

Let's remind that the four-seater two-engined plane ran yesterday into a 72-storeyed residential building of Manhattan. It led to a fire and to fears that it is the next act of terrorism.

It is necessary to remember that after events on September, 11th, 2001 similar incidents are perceived by the financial markets extremely negatively, that led to leaving at once of several large players.

And though representatives of force departments denied these alarms, having declared that it is an accident.

 

Let's also remind that quarterly report of Alcoa disappointed investors, having shown data on proceeds and incomes below predicted. It led to decrease in shares of the aluminium giant at once by 5,1 %.

But the leader of falling were shares of Legg Mason, which at great volume fell in price at once -17,24 %, or $18,16 up to $87,15. Investment bank Merrill Lynch lowered its recommendation on shares of Legg Mason to "to sell".

On the eve in the evening the company warned that the profit of the second fiscal quarter will be below analysts’ expectations.

So, the company expects profit for a share at a rate of $0,96 - $1,02, thus the average forecast of analysts makes $1,02.

 

In the sad list on results of the tenders there were also shares of TD Ameritrade; E-Trade Financial Corp. and Charles Schwab & Co., which lost accordingly -11,94 %, or $2,28 to a level $16,82; -8,79 %, or $2,15 to $22,31; -4,65 %, or $0,84 to $17,22.

 

Alliance Data Systems Corp. papers also lost in the price -3,72 %, or $2,14 and were closed at a mark $55,31 for a share. The volume of the tenders exceeded three times average daytime. An occasion for sales became news that one of founders of the company finished sale of 7,2 million ADS shares.

 

The drop in key share indexes was also caused by Bank of America, which representative declared that its broker division starts to offer up to 30 free-of-charge transactions a month to clients, whom balance of the broker account makes above $25 000.

After that investors of the basic on-line broker companies were shocked by BAC statement and started to get rid of their shares that led to depreciation of shares on results of day by -1,08 %, or $0,59 up to $54,04.

 

Decrease in key share indexes was not stopped by renewal of falling of oil prices. We remind that oil futures become cheaper the second day successively. Thus November oil future lost on Wednesday $0,93 and was closed at a level $57,59 a barrel.

 

As a result Dow-Jones index of New York stock exchange fell 15.04 points and was closed at a level 11852.13. NASDAQ index was down 7.16 points and is at a level 2308.27. S&P 500 index reduced 3.47 points and is at a level 1349.95.

And 30-years US Treasury notes’ yield grew 0.034 in comparison with the previous closing and makes 4.913.

 

As a result we recommend to remain outside the market. For opening of long-term purchases of futures for Dow-Jones and S&P 500 indexes it is necessary to wait for more significant drop.

 

 

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19/12 21.15
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