USmarket Long-felt correction of key stock indexes is being realized.
11:47 11/28/2006

The beginning of current week in the American stock market was marked by the largest falling of the basic exchange indexes for the last half of a year.

Let's remind that a warning of yesterday's wreck of key indexes became prompt dollar pique in the thin Friday market. So, falling of the American currency up to two-months lows forced investors not to hurry up with opening of new positions.

 

Besides on a background of absence of significant news of the macroeconomic character, the share market was under pressure of a situation in the energy market. We remind that oil quotations, having overcome a psychological boundary of $60 a barrel, again began to show the tendency to a rise in price.

Let's remind that January oil futures on NYMEX decreased $1,08, having closed ar a mark $60,32 a barrel.

And future contacts on gold with delivery in February on COMEX of New York commodity exchange were up $11,70 and were closed at a mark $647,10 for ounce. December contracts also showed growth of $11,6, having closed at a level $640,6.

 

As a result our assumptions of fast significant correction of key indexes are being realized. We remind that yesterday Dow-Jones index fell 158.38 points and was closed at a level 12121.79. NASDAQ index dipped 54.34 points and is at a level 2405.92. S&P 500 index went down 18.99 points and is at a level 1381.96.

And 30-years US Treasury notes’ yield dropped 0.011 in comparison with the previous closing and makes 4.618.

 

It is necessary to notice that yesterday on corporate space decreasing papers were in overwhelming majority. Therefore on this background it will be more interesting to remind of the companies resisting the bear moods and managed to show growth.

First of all it is a network of shops on sale of household and finishing goods Low’s which quotations, after increase of recommendations on the company by Bank of America analysts up to a level "to buy", grew 1,3 % yesterday.

And papers of Altiris company, the founder of software products for assets management, after increase of their corporate rating by analysts of investment bank JP Morgan up to a level "better than the market", have risen in price 0,6 % yesterday.

 

We remind that already since today participants of the market become witnesses of publications of the whole series of significant macroeconomic statistics. That is why reaction of the market to these publications is the main indicator of the nearest tendencies in the stock market.

Therefore we recommend to wait for deepening of current correction of key indexes. The purposes of decrease in Dow-Jones and S&P 500 indexes, mentioned in the last comments, also hold good.

 

 


© Copyright 1998-2006 OpenForex.com - forex trading, brokers, financial forecast