USmarket Key stock indexes do not hurry up to realize correction.
20:48 11/01/2006

Last day of October trade in the American share market was within the limits of narrow trading ranges.

 

Yesterday's data did not inspire investors on new purchases. We remind that Chicago Purchasing Managers’ index in the USA for the October, reflecting a current level of production and changes in a portfolio of orders at the enterprises, made 53.5at the forecast 58.2, and the previous value 62.1.

The parameter was not only considerably below the forecast, but also reached a minimum level since August of the last year.

The reason of this became essential decrease in values in both basic components.

 

The consumers’ confidence index in the USA for October, also was worse than the expected level and, owing to upward revision of the previous value fell in comparison with the last month.

Let's remind that, at the forecast 108.5, value of the parameter was 105.4. And the previous value was revised from 104.5 up to 105.9.

Thus subindex of expectations grew up to 92.6 from 91.0 in September, however subindex of current conditions fell to 124.7 from 128.3 due to less positive prospects of a labour market.

Subindex of those who considers that it is difficult to find a job at present, grew up to 22.0 in October from 20.9 in September, and subindex of those who believes that it is easy to find a job, made 25.8 against 26.2 a month earlier.

Analysts also noted that annual inflationary expectations did not change in comparison with the last month, having remained at a level of 4.9 %.

 

Among corporate news it is necessary to note growth of Dell quotations at once by 4,1 %, the largest world producer of personal computers. The reason of growth became the recommendation of Swiss investment bank UBS, which raised recommendations on the company from a level "to reduce" up to "neutral".

And papers of the American-Canadian manufacturer of beer and other alcoholic drinks Molson Coors Brewing rose in price +4,97 %, or $3,37 up to $71,18 for a share.

Let's remind that in the quarterly report the company informed that in the third quarter earned for the shareholders 26 % more profits at a constant sales volume.

The profit for a share made $1,56 in comparison with $1,26 a year earlier. The proceeds from realization made $1,58 billion in comparison with $1,53 billion in the third quarter, 2005.

 

During yesterday's tenders Eastman Kodak, which shares, despite the company’s losses the eighth quarter in a row, rose in price at once +2,74 %, or $0,65 up to $24,40 for a share, lifted its capitalization.

Let's remind that the company informed that in the third quarter 2006 its losses reduced to 37 cents for a share in comparison with losses of $3,18 for a share a year earlier. The third quarter, 2005 included single allowances $778 million. This year expenses for re-structuring of the company made $200 million. At their exception the company’s profit was in area of 44 cents for a share, that is above 19 cents for a share predicted by analysts. The proceeds of the company decreased to $3,2 billion from $3,5 billion a year earlier.

 

Among leaders of decrease there were Technitrol Inc. shares, which fell at once -16,85 % at very high volume, having fallen in price $5,11 and having closed at a level $25,22 for a share.

Let's remind that on the eve the manufacturer of components for electronics informed on growth of profit by 20.9 % up to 49 cents a share that exceeded analysts’ expectations by 9 cents.

Sales jumped up 75 % to $257,7 million, also the company informed that is going to purchase assets of Radial/Larsen Antenna company. Conditions of the given transaction were not announced.

 

As a result Dow-Jones index of New York stock exchange was down 10.33 points and is at a level 12076.17. NASDAQ index was up 1.70 point and is at a level 2365.47. S&P 500 index dipped 0.57 point and is at a level 1377.36.

And 30-years US Treasury notes’ yield fell 0.067 in comparison with the previous closing and makes 4.719.

 

We recommend, being outside the market, to wait for more significant correction of key indexes.

 

 

 


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