Dow Jones Industrial Average goes for a new spurt up, S & P is going down rapidly

Dow Jones Industrial Average yields bears in the beginning to reach new highs in late trading

In brief: Low level of support for Dow Jones by bulls prevents Dow index to go into the green zone.

Dow Jones Industrial Average close to the mark of 10,469.69 points. Dow Jones Industrial seeking growth +35.52 points (0.34%). At the moment of time S & P is on 1.39 points (-0.12%) – up to 1,114.86 points , index Nasdaq – on 2.49 points (-0.12%) – up to 2303.91 points. Stock trades in the U.S. on June 18 opened a decrease in the leading index in anticipation of expiration of options and futures on stocks and indices. In this regard, traders expect that the session today was formed rather calm and volatility observed in the previous days, some will fall. In addition, there is no statistical data on the U.S. economy, which could make substantial changes in the dynamics of quotations on American stock trades.

The external background trades today, but rather negative: stock trading in Europe opened up different directions the movement’s leading indices, stock trading in Japan in the absence of important news resulted in a slight drop in the composite index, Nikkei (-0,04%). According to the chairman of the Federal Reserve System (FRS), Donald Kohn, the fiscal problems of Europe will continue to influence the U.S. markets until 2011. For additional cause for optimism is the absence of depressing news from the region, the economic situation which has recently become a source of concern among American players. The International Monetary Fund Managing Director Dominique Strauss-Kahn arrives in Spain for a meeting with Prime Minister Jose Luis Rodriguez Zapatero to discuss the issue of public finance. Despite the fact that both sides insist that the meeting had been planned in advance, the participants in world markets continue to worry that Spain intends to demand from the IMF and European Union aid, is indicated by Dominique Strauss-Kahn’s visit to the country. Against this background, the banking sector there is now a mixed dynamics quotes: stocks JPMorgan Chase and Goldman Sachs went up by 0,3% and 0,6% respectively, papers Bank of America and Citigroup, by contrast, have fallen in price on 0,1% and 0 2%, respectively. In the securities sector, energy companies, today there is the negative dynamics of quotations – so, shares of ExxonMobil and Chevron oil became cheaper by 0.1% and 0.5% respectively. At the same time, investors continue to monitor the situation around the British oil company BP. Today it became known that the international rating agency Moody’s Investors Service downgraded the credit rating of BP in three stages – to a level A2 Aa2 and placed long-term credit rating of BP to review possible reductions.

Nevertheless, shares of BP, traded on the NYSE, continues to go up. At the opening of stock trading in the U.S., they added in the price of 2,1%. Despite criticism from Washington and unfavorable disposition of analysts Moody’s, in support of the British company had already made the United Kingdom. In particular, the Chancellor of the Exchequer George Osborne at a press conference said that BP is incredibly important for the United Kingdom. Dzh.Osborn also noted that BP is important not only for the British, but also for the American economy, as employees of the company is also a lot of U.S. citizens.

Favored fold bidding for the manufacturer of computer components Smart Modular Technologies, which published a forecast for sales at the end of IV quarter of the current fiscal year. According to the company, proceeds from sales will be at least $ 200 million, higher than the consensus forecast of analysts. As a result, the company’s shares soared in price by 8,2%. We note that the company is a member of high-tech index, Nasdaq. Against this background, successfully run auctions for other high-tech companies index: Paper Micron Technology and Intel Corp. grew by 0,6% and 0,1% respectively.

At the opening of the trading session on 0,8% cheaper shares of U.S. producer and equipment for communications company Motorola Inc., Which, according to unofficial sources, intends to repay part of its debt and invest in the rehabilitation of their units for the production of mobile phones, the financial situation which leaves much to be desired.

Igor Tringlers
2010-06-18 14:58, Economics.

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