After steady forward movement during the last week on Monday, November, 20th American stock market demonstrated hint on the realization of down correction.
Let’s remind that investors preferred to wait and not to show initiative before long days off. However, in a half of an hour after the beginning of tenders October dynamics of leading indicators gave a new occasion for purchases.
So, index of leading indicators in the USA in October made +0.2%. The forecast was +0.4%, and the previous value was revised from +0.1% up to +0.4%.
Among corporate news the main event for investors became messages about intercorporate mergers and acquisitions.
EKN Financial Services expert noticed that “despite promulgated transactions were not especially important for the market as a whole, they, nevertheless, testified to that the corporate America does not consider retraction of economy to the recession as probable and counts on the positive script of development of events in 2007”.
The second in size bank of the USA Bank of America published yesterday a transaction on purchase of investment fund US Trust, which was a property of a broker company Charles Schwab, for $3,3 bln. On a wave of additional incomes SCHB papers increased 2%.
A property of Roamn Abramovich Russian steel company Evraz Group informed on purchase of American Oregon Steel for $2,3 bln. cash. As a result at yesterday’s tenders the papers of the last hiked 8,2%.
But the absolute leader of growth yesterday were Phelps Dodge papers, having mines in the Northen and Southern America and Africa, for $25,9 bln., which shares were up 28%.
And shares of multinational mineral resource company Freeport-MacMoRan Copper & Gold, mining non-ferrous metals in Spain and Indonesia, and declaring about purchase of its competitor, lost about 2% as a result of yesterday’s tenders.
Equity Office Properties Trust papers, having and engaged in office property administration, grew $3,42, that made 7.6% up to $48.14.
Experts consider that purchase of the largest company on property administration by the Blackstone Group is the biggest transaction in this branch.
Besides Swiss investment bank Credit Swiss First Boston raised Microsoft rating up to “better than the market” and raised the price reference point on its papers up to 35$. The increase in a rating is connected with expectation of Microsoft good profit from a new operating system Vista and Walkman Zune, which can be a real competitor of iPod. Microsoft quotations were up 1,7% at yesterday’s tenders.
As a result Dow-Jones index of New York stock exchange was down 26.02 points and was closed at a level 12316.54. NASDAQ index was up 6.86 points and is at a level 2452.72.. S&P 500 index dipped 0.70 point and is at a level 1400.50.
And 30-years US Treasury notes’ yield fell 0.014 in comparison with the previous closing and makes 4.677.
We recommend to hold a temporizing policy, waiting for a correction of key indexes.
