USmarket American share market shows growth despite experts’ warnings.
11:47 11/16/2006

Powerful fundamental impulse for the further growth of key stock indexes on Wednesday, on 15-th of November, became the review of business conditions in state of New York.

Let's remind that despite economists’ forecasts decrease in the index November value of the indicator grew up to a five-monthly top. Thus, practically all components of the index showed good dynamic of growth.

So, NY Empire State index in November, having surpassed analysts’ expectations, was above predicted 15, and made 26.66. And in October the parameter made 22.92.

 

Thus other components of the report also showed growth. So the index of new orders in November was up 22.38 against 11.75 a month earlier, the index of shipment made 26.63, having risen from 22.54, and the index of back orders made 10.24 against -1.51 earlier. The employment index, in the meantime, grew to 24.50 from 19.39, however, inventories index increased up to 3.77 from 2.50 in October, and the index of the paid prices reached 34.90 against 30.83 a month ago.

Thus the index of prospects for 6 months in November rose up to 37.76 from 30.17 in October.

 

Thus investors were not confused by the growth of oil futures happened right after the publication of oil and mineral oil stocks for last week, shown even drop in week stocks of petroleum and distillates

Let's remind that after the US Department of energy informed that distillates stocks decreased, having shown falling the 6 week in a row, oil futures directed upwards.

As a result, the contract with delivery in December on New York commodity exchange dipped $1,50, having closed at a level $58.76 a barrel.

 

Among corporate news the main event was powerful rise of US Airways papers which declared about its intention to buy greater than itself airline Delta Airlines, having serious financial difficulties.

As a result US Airways shares hiked 16,8 %yesterday, becoming the absolute leader of growth. And Delta company added 3,4 % to its cost, having raised a level of capitalization more than 40 % since the beginning of a month.

Thus, inspired by growth of competitors, papers of Continental, JetBlue and American Airlines grew 12,3 %, 7,4 % and 5,4 %, accordingly.

 

In technological sector papers of the companies of Internet technologies showed the confident rise. So, quotations of the auctioneer eBay and main on-line seller Amazon increased 2,7 % and 2,6 % accordingly, while Google was up 0,5 %, and 4 % from the beginning of week.

And, still remaining in the center of attention Intel again added to its cost 2 %. We remind that from the beginning of week growth of the company’s shares made 8,2 %.

 

After increase of a rating of tobacco giant Altria from "to hold" up to "to buy" by Goldman Sachs experts before assembly of investors on Thursday, shares of the company rose 1,4 % and achieved the mark $82.25.

Let's remind that Goldman Sachs analysts estimated positively activity of the company and an opportunity of it rise in the world tobacco market.

 

As a result Dow-Jones index of New York stock exchange was up 33.70 points and was closed at a level 12251.71. NASDAQ index climbed 12.09 points and is at a level 2442.75. S&P 500 index rose 3.35 points and is at a level 1396.57.

30-years US Treasury notes’ yield was up 0.035 in comparison with the previous closing and makes 4.695.

 

We recommend, being outside the market, to wait for realization of correction.

 

 

 


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