Dow Jones Industrial Average and Nasdaq: has the collapse canceled?

The level of confidence in the Dow Jones Industrial Average rising, Nasdaq is stable

In brief: Dow Jones Industrial Average and Nasdaq are no longer growing, but remains in the green zone. Confidence in the U.S. stock market returns.

Dow Jones Industrial Average is at its peak. Trades take place at the level of 10,374.99. Dow Jones scored +184.10 (1.81%). The second week of June launched the new period of rising U.S. stock indexes ending the strip six weeks of correction. Last week, the most famous of the world’s barometer of stock activity Dow Jones Industrial Average (DJIA) heavier just 2,8%, the index of wide market S & P500 added to their values of 2.5% and the tech Nasdaq Composite has appreciated by 1.1%.

Descending indexes with peaks reached in late April, in fact lasted for six weeks (normal term for a full correction), lowering their average of 15%. During this time, investors have experienced momentary collapse of the market, all went down in the annals of stock under the definition of “flash crash”, a steep peak of the euro, the dramatic moments of the oil flood in the Gulf of Mexico, another spiral of confrontation in the Middle East, and a dozen smaller shocks regional scale. All taken together discounted stock indexes. However, behind the wall of fears and anxieties of far-sighted investors waiting for a juicy carrot. To the extent that, as the second quarter, inexorably moving towards its endgame, the attention of observers and market participants shifted to predictions of the results of the upcoming quarterly reporting. Judging by the modest increase in stocks of finished products and one unit increase staff, captains of big business sit on tons cache after the spring revival of demand in the Old and New Worlds. “It means,” – said Marc Pado (Marc Pado), an investment strategist at Cantor Fitzgerald, – “we will see in the quarterly reports exceptional profitability and solid profits, particularly in comparison with same period last year.” From Pado solidarizuetsya Thomas Lee (Thomas Lee), head of the Department of the stock market bank JP Morgan Chase. Lee, based on corporate information, believes that the balance sheets of major corporations would be best for 60 years. In support of this thesis fits well into the newly released date index of industrial activity in the State of New York, which analysts attribute to a number of leading indicators. This portfolio of new business enterprises in the state this month put on weight more than 20%, while the number of employment vacancies fell by half. Here you have a source of corporate welfare. Even last week I noted the outcome of investment capital from traditional protective havens like gold and the dollar, and their gradual transfusion in risky assets on the stock and commodity platforms. Declassified U.S. Treasury data today come as a string bass. In April, investors bought Treasury bonds worth $ 83 billion against $ 140.5 billion in March. Of course, not rely on the daily rise in quotations, but the prospect of a repetition of April and, consequently, 20-month highs in the second half of July, I appreciate how achievable. However, for a remake of upward movement in the area of 1 220 points for the “broad” index S & P500 is necessary to pass first zone of resistance in the range of 1 110-1130 points and “take” psychological bar at around 1,150 units.

Anrey Torbinski
2010-06-15 18:39, Economics.

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