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Forex · News · USMarket

NEWS / USMarket

USmarket Key indexes again show growth, however probability of down correction only increases.

11:47 10/17/2006

The beginning of week in the American stock market was marked by continuation of growth of the key indexes, begun in second half of last week.

 

Fundamental reason for growth became last publications. So, yesterday's ones showed active growth of industrial expansion in the state of New York, the largest region of Northeast of the USA.

However, in experts’ opinion the further growth of indexes was constrained by sharp rise of the oil prices. We remind that for a day the barrel of crude oil of Light Crude rose in price more than 2 %.

As a result oil futures continued growth on Monday after OPEC decided to call extraordinary meeting. Thus November oil future added $1,37 and was closed at a level $59,94 a barrel.

 

Growth of gold futures, which after the security council of the United Nations voted for assumption of sanctions concerning Northern Korea, were closed yesterday at a level of a fortnight top, could not put pressure upon key stock indexes.

Thus the price of December future contract was up $5,80 to $598,50 for ounce.

 

The attention of the majority of investors is directed to the decision of FOMC members at the nearest meeting on 24-25 October. Therefore, in experts’ opinion players will trace especially closely today's and tomorrow's data on September price indexes - PPI and CPI.

 

Among corporate events latest news were not ignored. So, yesterday papers of the oil and gas companies, adjusted by a rise in energy prices, moved upwardly.

As a result of quotations of Exxon Mobil, British Petroleum, Chevron and Suncor, raised 2,1 %, 2,4 %, 1,3 %, and 3,8 % accordingly. Thus the service companies of oil-and-gas sector showed good running.

So, chisel company Grand Prideco hiked 6,1 %, and Natural Gas Service Group jumped up 5,1 %.

 

Positive dynamics demonstrated yesterday shares of the manufacturer of toys Mattel Inc., having risen in price +2,90 %, or $0,60 and were closed at a level $21,30.

The profit of the manufacturer of Barbie dolls, and other well-known toys in the third quarter was up 6 % up to $239 million from $225,3 million a year ago.

Sales increased 7 % up to $1,79 billion from $1,67 billion a year ago. In turn, analysts forecast profit for a share in area 61 cents at proceeds $1,63 billion.

Sales within the limits of the USA increased 5 %, and outside the USA - 12 %. Results of internal investigation concerning stock options to employees of the company from 1993 till 2006 did not reveal any illegal frauds.

 

Papers of Internet broker Charles Schwab Corp. fell in price $0,46 (-2,62 %) up to $17,10 for a share by results of the tenders. Before opening of the market the company published financial results of the third accounting quarter. The profit of the broker was up 29 % to $266 million from $207 million in the given period of 2005. The proceeds increased 13 % and made $1,29 billion in comparison with $1,14 billion a year earlier. The profit for a share was 1 cent above the average forecast of analysts according to Thomson Financial. However investors were not interested in the given result, and they have decided to fix a part of profit on growth of the shares approximately at 30 % since the middle of July.

And expected price "war" with Bank of America and others Internet brokers will, most likely, affect negatively  incomes of the future periods.

 

Manpower Inc.papers, granting service on search and selection of the personnel, grew 3,82 %, or $2,38 up to $64,72 for a share on high volume.

The company will announce results of last accounting quarter on today morning before opening of the share market.

 

Pw Eagle Inc. papers, which added $1,28 up to $35,44 for a share, also rose (+3,75 %). The profit of the manufacturer of polyvinyl pipes and accessories to them, grows during last two accounting quarters more than 100 %. The quantity of institutional investors owning the company’s shares rose from 6 last year up to 36 by the current moment.

 

As a result Dow-Jones index of New York stock exchange was up 20.09 points and was closed at a level 11980.60. NASDAQ index grew 6.55 points and is at a level 2363.84. S&P 500 index increased 3.43 points and is at a level 1369.05.

And 30-years US Treasury notes’ yield fell 0.019 in comparison with the previous closing and makes 4.919.

 

Despite current rise of key indexes, we recommend while to keep position outside the market.

 

 

 

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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
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EUR/JPY162.7900162.8300
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GBP/CHF2.30702.3080
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