Forecast: The DJIA goes up into the sky higher and higher

Dow Jones Industrial Average had ordered bears sit still

In brief: Dow Jones Industrial Average gave this rally against the background of excellent records of all companies that are not even included in the index. Earnings Hershey was very high.

Ben Bernanke’s biannual report has disappointed markets yesterday, but the Dow Jones Industrial Average managed to gather strength in his fist and grow to very large marks. The DJIA is at 10,326.38 points, Dow index rose 05.85 (2.03%). This growth rate was a record for Dow Jones this summer. The main ideas expressed by the head of the U.S. Federal Reserve, concluded that the uncertainty in the U.S. economy remains “unusually high”, there is no source of growth in household incomes and hence demand, which leads to a difficult situation on the labor market.

The Fed will monitor further developments and will take all necessary measures to help the economy. Thus, the Fed recognizes the weakness of the tools that are in its possession at this point. Naturally, this emphasis on the uncertainty of the markets made a negative impression. Markets do not like uncertainty, especially the “unusually high”. As a result, lateral movement of U.S. index, due to both positive and negative corporate reporting yesterday, was broken and the market went down. Indices lost within 1-1,6%. Today, futures are still intact. The Asian region, except the Chinese market, also shows a decline within 1%. Avoiding the risk of global investors and is seen by the dynamics of pair dollar / yen, the quote is now reaching 86.5, referring to the yen, as well as the dynamic yield 2-year U.S. Treasury bonds, which yesterday reached historic lows, 0.5601%. Today we see the sale on the market of raw materials, but also restrained. The dynamics of oil prices further influenced yesterday’s statistics from the Ministry of Energy of the United States. According to her, crude oil rose last week to 0.36 million bar., Petrol – on 1,1 million bar., Distillates – on 3,9 million bar. These data were worse than the figures published on the eve of the American Petroleum Institute, and worse than expectations. As a result, WTI futures for today are 76.4 dollars / bar., On Brent – $ 75 / bar. Earnings Hershey was very high. American chocolate manufacturer Hershey has reported a profit in the second quarter that exceeded the expectations of most analysts. Thus, net income was $ 46.7 million, or 20 cents a share, compared with $ 71.3 million, or 31 cents a share, a year earlier. This profit excluding certain items reached 51 cents, while analysts had expected 46 cents per paper. Net sales rose by 5.3% to $ 1.23 billion, representatives of Hershey expects the earnings per share will amount to up to 2010 $ 2.47 – $ 2.52.

Ukrainian Globalist
2010-07-22 14:23, Economics.

News on: , , , , , , , , , , , , , , , , ,

Post a comment