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Forex · News · USMarket

NEWS / USMarket

Usmarket Basic stock indexes are still stable, but deep correction has already ripened

11:47 11/20/2006

Having begun trade on Friday, on November, 17th from some decrease and then during trading session key stock indexes were supported by last economic news and continuing drop in oil quotations.

 

Let’s remind that reduction of stock market in the beginning of tenders was caused by housing starts for the last month, shown drop in demand for real estate.

So, housing starts in the USA for October demonstrated slump of not only indicator in comparison with the previous value but with economists’ forecast.

 

The indicator made 1.486 million, at the forecast 1.690 million, and the previous value 1.772 million, thus building permits in the USA made 1.535 million for October, at the forecast 1.625 million, and the previous value 1.619 million.

As a result housing starts fell 14,6% in October. And building permits dipped to the lowest level since 1997.

 

Shift of investors’ moods was caused by decreasing oil prices and news, confirming rise of consumer sector.

Let’s remind that December oil futures on NYMEX were down 45 cents on Friday, having closed at $55,81, after achieved the low at $55,08, being the lowest level for the last 17 months.

Among corporate news growing Altria papers supported bull sentiment of investors. After the company won class action in Court of Appeals vs. manufacturer of light cigarettes, Altria papers grew $1.44, or 1,7%, having closed at $85.01.

The consumer sentiment in the market was also promoted by growing Johnson & Johnson papers, which informed that plans to buy the manufacturer of cardiac apparatuses - Conor Medsystems for about $1.4 billion.

As a result JNJ papers were up $0,71 to $67.24 on Friday. Conor Medsystems shares hiked $5.16, or 18,75%, finished a day at $32.68.

Development of growth of key stock indexes was prevented by decreasing shares of network of coffee houses Starbucks, which declared on its profit on the eve, and gave the forecast concerning sales and net profit, which was below analysts’ expectation. As a result the company’s shares were down $2.01 that made 5,10%, up to $37.42.

As a result Dow-Jones index of New York stock exchange reached new record mark 12342.56 points, having added 36,74 points that made 0,3%. NASDAQ index fell 3.20 points and is at a level 2445.86. S&P 500 index grew 1.44 point and is at a level 1401.20.

And 30-years US Treasury notes’ yield fell 0.042 in comparison with the previous closing and makes 4.691.

 

It is obvious that the significant correction of key indexes has already ripened long ago. We recommend, being off the market, to wait for its realization. After that there will be possible new long-term purchases of futures for indexes.

 

 

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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
USD/CAD1.00521.0056
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
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