Dow Jones Industrial Average is preparing for the week of great recovery

Dow Jones Industrial Average doesn't want to go down

In brief: Dow Jones was seduced by a pack of bulls. Dow Jones Industrial Average finishes trading today at a risky positive territory

Dow Jones Industrial Average is a potential leader of growth on the world’s stock trades on the week. Dow Jones surprised the bear resistant to the negative data of international statistics. Stock trades in the U.S. on June 1 2010. approached the second half of trades mainly with the increase of leading indexes against the backdrop of favorable statistics. Investors are closely watching the developments in the national economy. Today the U.S. Department of Commerce provided data on the amount of construction costs in the U.S. in April 2010. The index rose by 2,7% compared to the revised rate in March and amounted to 869.1 billion dollars. Meanwhile, analysts expect that this figure will not change.

The positive influence on the trading and helped report the U.S. Institute for Supply Management index on business activity in U.S. industry (ISM index). The index in May 2010. fell to 59.7 points compared with the revised value for April to 60.4 points, although experts expect this figure will decline more and will be 59.5 points. Against this background, plus left quotation banking sector: Bank of America shares went up by 0,4%, Wells Fargo & Company – by 0,5%, Goldman Sachs Group – by 0,9%. Meanwhile, the external background trades today quite unfavorable, which determines some volatility on U.S. exchanges. On the global markets are putting pressure range pessimistic news. To concerns about debt problems in the euro zone added a new portion of the negative associated with the failure of the British energy company BP in the elimination of oil leaks from a hole in the bottom of the Gulf of Mexico, as well as the tightening of the sale of the Asian insurance business of AIG British insurer Prudential and the slowdown in industrial growth China. Today, the Chinese Federation of Logistics and Supply reported that it had calculated the index PMI in the manufacturing sector fell in April to 53.9 points against the market expectations at the level of 54.5 points. Published data reinforced fears of a possible slowdown in economic growth in China. Against this background, Hong Kong stock market fell up to today’s trading at 1.4%, adding a negative to the discovery of American trades. The absolute leader in the fall of European stock began trading shares of the British BP, collapsed by 15% after the failure of top-kill operation to stop the flow of oil from the emergency wells. Note that a similar dynamic quotations demonstrate, other European oil and gas companies. With regard to U.S. energy giant ExxonMobil, Chevron and their competitor ConocoPhillips, their securities are traded today in the “plus”: an increase of 0,3%, 0,4% and 0,1% respectively. Meanwhile, the negative trend in prices observed in the market of industrial metals, resulting in cheaper paper Aluminium group Alcoa (-0,9%) and mededobyvayuschey Freeport-McMoRan Copper & Gold (-1,7%).

Undermines investor confidence and the problems with a transaction between AIG and Prudential, which was to become one of the largest this year on the market M & A (mergers and acquisitions). After the Prudential requested to reduce the cost of the transaction by buying the Asian business of AIG initial 35.5 billion dollars to 30.4 billion dollars, AIG issued a statement which indicated that it intends to renegotiate the deal. Traders believe that now the agreement will be withdrawn. Meanwhile, AIG securities podorolzhali at the opening of trading on 0,7%. Currently, the Dow Jones index rose by 32.04 points (0.32%) – up to 10,168.67 points, the S & P fell 0.17 points (minus 0,01%) – up to 1,089.55 points, Nasdaq Composite Index increased by 6.92 points (0.31%) – up to 2,263.04 points. The index of business activity in U.S. industry (ISM index) in May 2010. fell to 59.7 points compared with the revised value for April to 60.4 points, according to a report released today by the American Institute of Supply Management. Analysts forecast that the figure was 59.5 point. The index below the 50 points shows the decline in industrial production, and the excess of this level – on the contrary, the industrial growth. The costs of construction in the U.S. in April 2010. increased by 2,7% compared with the revised rate in March and amounted to 869.1 billion dollars, the report says the U.S. Commerce Department. Analysts had expected that this figure will not change.

Pavel Migin
2010-06-01 18:02, Economics.

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