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Forex · News · USMarket

NEWS / USMarket

Usmarket Stock indexes grow not noticing renewal of growth of oil quotations.

11:47 10/16/2006

On Friday the positive mood of investors, despite growth of oil quotations and notes’ yield, was kept.

 

However trade on Friday began with drop in the basic share indexes. The market was under pressure of varied economic data. So, retail sales decreased 0,4 % in September, at forecasts of growth of 0,2 %. Thus a main factor of decrease became falling of petroleum prices 9,3 %.

And, ex auto sales fell 0,5 % that became the largest falling for last three years. We remind that experts forecast that ex auto sales would remain without changes. Ex auto and petroleum sales, retail sales increased 0,8 % that is very good result.

 

Another important Friday indicator – University of Michigan consumer sentiment index for October was much more above the average forecast of analysts who expected value in area of 86,4 points.

Let's remind that the parameter grew up to value 92,3 points from 85,4 in September.

 

It is necessary to notice that key indexes remained stable even despite renewal of growth of oil quotations. So, oil futures continued to rise in price at the tenders on Friday.

The main reason of growth became unusually cold weather, including snowfalls in northern areas of the USA. As a result November oil future added $0,71 and was closed at a level $58,57 a barrel.

As a result week reduction of oil price made 2 %.

 

Thus futures for gold rose in price. As a result the price of December future contract increased  $12,40 up to $592,70 for ounce. And for a week gold was up 2,8 %.

 

Among corporate news it is necessary to note growth of shares of the insurance company UnumProvident which rose in price at once +9,26 %, or $1,84 up to $21,72 for a paper after Reuters informed that the company can be purchased by Canadian insurer Sun Life Financial.

In turn SLF papers were up +1,35 %, or $0,53 up to $39,87 for a share.

 

Baldor Electric papers fell in price $0,20 up to $32,70 for a share. On Thursday evening, the manufacturer of electric motors and generators of the electric power informed on growth of profit in the third quarter by 12 % up to 37 cents for a share, however they were 3 cents below of the average forecast.

The proceeds increased 12 % up to $212,9 million.

 

Except for this papers of a stock exchange of tools Chicago Board of Trade added +3,32 %, or $4,31 and were closed at a mark $134,20.

In October a stock exchange the second time informs on record turnovers in division of agricultural tools. The company publishes the quarterly report on Tuesday. Analysts expect that growth of profit will be within the limits of 108 % at a level $0,79 for a share.

 

As a result Dow-Jones index of New York stock exchange was up 12.81 points and was closed at a level 11960.51. NASDAQ index grew 11.11 points and is at a level 2357.29. S&P 500 index rose 2.79 points and is at a level 1365.62.

And 30-years US Treasury notes’ yield grew 0.027 in comparison with the previous closing and makes 4.938.

 

Despite growth of key indexes, we recommend to be outside the market. The probability of close and significant correction of indexes is kept.

 

 

 

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