The market review for June 14

The American stock market on Friday, June 11, opened lower prices of most securities. Before investors put into the quote too much optimism about the future of the U.S. economy, and Friday’s positive expectations have been partially allayed by the data published macroeconomic statistics. In particular, the volume of retail sales in May fell by 1.2%, while economists have predicted his rise to 0,2%. This is the first decline in eight months and quite a negative signal indicating the skepticism of ordinary consumers as to the medium-term prospects of the market. Do not have lasted until the April forecast and the amount of stocks in warehouses: its growth rate of 0,4% instead of the expected 0.5% and was minimal in recent years. Some raise the mood of investors could publish consumer sentiment index for June, calculated by the University of Michigan. From the May level (73.6 points) rose to 75.5 points and established at a maximum of two and a half years level. The interpretation of the growth index at odds with the situation in retail. On this background during the session on 11 June the Dow Jones index made a few attempts to approach the level of Thursday, and only in the last hour of trading managed to get a “plus”, which is a big success for the “bulls” in the light of rapid growth of the preceding day.

As a result of trades on June 11 the Dow Jones index rose 38.54 points (0.38%) – up to 10,211.07 points, NASDAQ rose 24.89 points (1.12%) – up to 2243.6 points, S & P added 4.76 points (0.44%) and amounted to 1,091.6 points.

Amid disappointing sales data by major trading network of the country were among the outsiders bidding. Quotes of the largest U.S. retailer Wal-Mart Stores Inc. fell by 0,7%, The Home Depot Inc. – On 1,53%, Costco Wholesale Corp. – On 0,23%, Lowe’s Companies Inc. – On 1,51%, Gap Inc. – On 0,32%, Staples Inc. – At 0.73%. Given the fact that in the summer buying activity may continue to decline because of seasonality, promotions retailers have every chance to remain under pressure, of course, if the economy starts to show signs of active recovery, which is very doubtful. read more

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Due to an unknown error the U.S. market for 15 minutes lost over $ 1 trillion

Yesterday’s trading on Wall Street, no doubt, will enter the history books under the name of another “Black Thursday”: a few minutes the Dow Jones index fell by almost 1000 points, the S & P 500 lost just 8.6%, the newspaper Vedomosti.

According to the company’s Wilshire International, dedicated to the statistics on Wall Street, for 15 minutes, the market lost more than 1 trillion dollars. “It was the largest drop in the Dow Jones industrial average in its history”, – said the site CNN Money.

News concerning Greece and the passivity of the ECB, have already been won back the market to 14.42 local time in the U.S., when the index suddenly went into a nosedive. By 14.47 Dow Jones Industrial Average sank to a mark of 10 000 points, losing 998.5 points. Prior to that, the most significant drop in the day in the history of the index was on Sept. 29, 2008, when Dow Jones fell by 777.68 points.
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The market review for May 6

Bidding on the U.S. stock market on Wednesday, May 5, were in the moderately negative way. Investors have been cautious because of the continuing concerns over the public debt of EU countries. According to some projections, the debt crisis could spread beyond Greece and become a deterrent to revive the global economy. Adds fuel to the fire, and information that the international rating agency Moody’s has placed on May 5 government bond ratings of Portugal at the level of Aa2 to the list to review possible reductions. This press release Moody’s said that ratings of Portugal can be lowered by one or even two stages as a result of the review, which will last up to three months.

In search of evidence of economic recovery the U.S. investors paid attention to the macroeconomic statistics, which were mixed. Number of created jobs in April, slightly exceeded expectations of the market (2 thousand) and amounted to 32 thousand pieces. It is worth mentioning that the situation on the labor market raises the most issues in terms of stability of the American economy, but now investors are more optimistic and do not expect unemployment. Some did not meet the expectations index of business activity in the service sector in April – it amounted to 55,4 points, while experts predicted growth of up to 56.4 points. This result can not be regarded as negative because the activity continues to grow, although its growth rate since March and is not accelerated. Nevertheless, the Dow Jones index on Wednesday was only briefly rise above the level of closing the previous session, up to 11000 points, he does not have lasted, and upset the market participants once again increase its value down properly.
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The market review for April 23

Bidding on the U.S. stock market on Thursday, April 22, begin to reverse the quotes. Investors are concerned about the news from Greece, where the budget deficit in 2009. was revised from 12,7% to 13,6%, while gross debt was already 115.1% of GDP. International rating agency Moody’s on this background sovereign ratings downgraded Greece from A2 to A3. Over the last months rally bidders awaited the appearance of more or less weighty reasons for early profit taking, and finally got them. At least in the short term markets are expected to remain negative moods.

Published U.S. macroeconomic statistics have been mixed. Number of requests for unemployment benefit last week dropped, but not strong enough. Not very positive factor was the increase in March producer prices by 0,7%, while the expected increase of 0,4%. Formed from the manufacturers the possibility of increasing selling prices, of course, indicates a revival of the market, but rising inflation will provoke the Fed to speed up the process of tightening monetary policy that investors completely useless. The index of house prices in February fell slightly – by 0.2%. Better predictions were data on the volume of sales in the secondary housing market in March (sold 5.35 million homes, while the expected 5.25 million). Experts attribute this increase to government programs encourage home buying. Those who buy a house for the first time, receive a small monetary compensation.

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The market review for April 22

Bidding on the U.S. stock market on Wednesday, April 21, began with a moderate positive. Uncertainty as to the financial stability of Greece, of course, still dominates the market, but investors in the absence of important macroeconomic statistics have focused on the strong quarterly reports of corporations. In addition, some support has had a message IMF to revise the forecast growth in world GDP at the end of 2010. from 3,9% to 4,2% and maintaining the forecast for 2011. at the level of 4,3%. During the day, the major U.S. stock indexes have visited the area reduction, but most of the day, still unable to complete a small plus.

As a result of trading on April 21 the Dow Jones index rose by 7.86 points (0.07%) – up to 11,124.92 points, NASDAQ – by 4,3 points (0.17%) – up to 2,504.61 points. S & P Index fell by 1.24 points (-0.1%) – up to 1,205.93 points.

The most anticipated event of the environment was the financial report of one of the leading U.S. manufacturers of computers, music players and software, Apple Inc. The company did not disappoint investors, and once again showed very high results for the II quarter 2009-2010 financial year. Net profit corporations amounted to $ 3.33 per share, revenues – 13.5 billion dollars Both are significantly higher than predictions by industry experts, who had counted on revenue in the $ 12 billion and earnings of $ 2.46 per share. Profit growth over the same period last fiscal year was 90%, and the achievement was achieved extremely high demand for new models of smart phones iPhone and computers Macintosh. Encouraged by the results of an Apple forecasts for the current quarter revenues of $ 13.4 billion, while analysts had expected only a $ 13 billion is obvious that it relies on the flatbed iPad, which enjoyed tremendous success. Flight quotations Apple is quite consistent with the volume represented by positive – on 5,98%. Shares second on the capitalization of the American company Microsoft Corp., To which the Corporation Steve Jobs left quite a bit cheaper at 0.09%.
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Case Goldman Sachs may be just the tip of the iceberg

The current investigation of the case against Goldman Sachs Group about fraud when trading collateralized debt obligations (CDO), may be just the tip of the iceberg and the beginning of serious problems for the banks on Wall Street, reports Reuters.

Investigation of an Internet portal ProPublica, concerning the game of the Chicago hedge fund Magnetar against CDO in 2007, has already led to accusations of conflict of interest with respect to Deutsche Bank, Merrill and JPMorgan Chase. Commission on Securities and Exchange (SEC) said it will seriously consider all such cases.

In relation to the Goldman Sachs, then there are several possible scenarios. First, the bank’s management is likely to prefer to pay a fine, even a few hundred million dollars, rather than allow a long-term investigation, which will seriously damage the reputation of the company.

On the other hand, the authorities, given the politically charged case, the desire to show the public that all are equal before the law, can not agree to a quick settlement. Furthermore, in this case, Goldman will have to face numerous lawsuits from affected investors, consideration of which will drag on for years.

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The market review for April 16

Bidding on the U.S. stock market Thursday, April 15, started opposite changes leading indexes because of the weak macroeconomic statistics.First, investors’ expectations are not justified report U.S. Department of Labor (United States Department of Labor), demonstrating growth in the number of primary applications for unemployment benefit up to 484 thousand from the past 460 thousand, while experts predicted decline to 440 thousandThis is the second consecutive increase in the number of those who receive the allowance, which is not evidence of improvement in the labor market, although the data on unemployment, which is no longer growing, continue to point to stabilize the situation.

Do not boosted share prices and the report of the Federal Reserve System (FRS) on industrial production for March, submitted before the start of the trading session.According to the report, the volume of industrial production increased in comparison with the previous month, only 0.1%, while economists predicted growth rate on a monthly basis on 0,7%.In addition, pressure on the paper provided investor concern problems with the budget deficit of Greece, which vaguely resemble the fiscal problems of the United States, behind that except that the explosive growth rates for American state bonds until portends.
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The market review for April 15

On Wednesday, April 14, trades on the American stock market began rising prices. Optimism for the most part was based on reports of strong semiconductor manufacturer Intel Corp. and one of the largest U.S. bank JPMorgan Chase & Co. After Alcoa Inc.failed to meet expectations on the eve of Experts on the part of the proceeds, the players began to doubt the success of the new season statements, but Intel and JPMorgan managed to dispel them. Published macroeconomic statistics were also quite good:Consumer prices in March rose in line with expectations at 0.1%, and increase the volume of retail sales for March exceeded projections by 0,4 percentage points Magnitude of changes in the last figure (1.6% in March) shows growth in consumption necessary for economic recovery.The tendency of people to savings falls, indicating that expectations of improving macroeconomic environment in the medium-term future.
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The market review for April 14

Bidding on the U.S. stock market on Tuesday, April 13, begin to reverse the quotes.Online stock market session set the record does not justify the hopes of aluminum giant Alcoa Inc., Published after the closing of the previous bidding and led to a fall on Wednesday the Dow Jones below taken on the eve of the level of 11000 points.Prior to the session, a report by the Ministry of trade of the country (United States Department of Commerce) on the U.S. trade deficit in February 2010. That the trade deficit has grown over the revised value for January 2010. and amounted to 39.7 billion dollarsAnalysts expected the indicator to 39 billion dollars is believed that the growth of the trade deficit is a positive for the economy, since an increase in imports brought about by increased consumption.In addition, it became known that the prices of imported goods and services in March 2010. grew only by 0,7% compared to the previous month, moreover, that analysts expected to increase by 0,9% on a monthly basis.The pessimism of market participants exhausted within an hour, and major stock market indices were able to return to levels close on Monday, where he spent most of the rest before closing time.

As a result of trading on April 13 the Dow Jones index rose by 13.45 points (0.12%) – up to 11,019.42 points, NASDAQ rose by 8.12 points (0.33%) – up to 2,465.99 points, S &P added 0.82 points (0.07%) and amounted to 1,197.30 points.

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The market review for April 13

Trading on the U.S. stock market on Monday, April 12, began rising through a number of indices of positive corporate news and a weakening of the pressure the Greek factor.16 ministers of the euro area have agreed to provide in the current year credit of Greece in the amount of 30 billion euros and 10 billion euros will be allocated to the IMF. In addition, it was decided that in case of a loan Greece will pay for it for about 5% per annum.The Minister of Finance of Greece Georgios PAPACONSTANTINOU stated that the purpose of Athens today is to continue borrowing from external markets without activation mechanism of financial assistance from the European Union.That is, Greece demonstrates the confidence of their forces, but from the insurance does not refuse. Bidders such a disposition of things more than arranged, and on Monday the long-awaited overcome the Dow Jones psychologically important resistance level of 11000 points.

As a result of trading on April 12 the Dow Jones index rose by 8.62 points (0.08%) – up to 11,005.97 points, NASDAQ rose by 3.82 points (0.16%) – up to 2,457.87 points, S & P added 2.11 points (0.18%) and amounted to 1,196.48 points.
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