At Thursday, August 5, trades on the American stock market took place in a negative way against the background of macroeconomic news. Investors are looking for evidence of improvements in the economy and in recent weeks seem to have even begun to find them, but on Aug. 5 The situation is otherwise. In particular, the U.S., the number of primary applications for unemployment benefit for the week ending July 31 unexpectedly rose by 19 thousand and reached 479 thousand according to reports from U.S. Department of Labor (United States Department of Labor). Analysts also expect that the incipient weak tendency to reduce the number of layoffs to continue and the index of applications will be 455 thousand Moreover, upward reviewed data the previous week. Thus, we can say that in recent weeks to improve the overall trend has not changed - the number of hits since the late 2009g.ostaetsya at 440-480 thousand, which means that jobs are not enough, and with the economic recovery will have to wait.
As a result of trading on Aug. 5 the Dow Jones index dropped by 5.45 points (-0.05%) - up to 10,674.98 points, NASDAQ fell 10.51 points (-0.46%) - up to 2,293.06 points, S & P dropped to 1.43 points (-0.13%) - up to 1,125.81 points.
Not pleased and statistics on retail sales for July: an increase in sales relative to the level a year ago was virtually the same as the previous month, ie, positive changes are not visible. Yes, and where they come from, if unemployment is not falling, and consumers are becoming more economical, waiting for the deterioration of their situation? Against this background, the capitalization of Costco Wholesale Corp. decreased by 1,64%, Lowe's Companies Inc. - On 0,34%, The Home Depot Inc. - On 0,03%, Best Buy Co. Inc. - On 0,09%. Only in the last minutes of trading to get to the positive territory could Sears Holdings Corp. (+0,1%), Wal-Mart Stores Inc. (0.02%), and Staples Inc. (0.3%). Outsider sector became a youth clothing retailer JC Penney Company Inc. with the result of minus 7.68%: investors do not like the fact that the network performance for the past four months in a row do not justify the expectations.
On Thursday, one of the last among the leaders of the insurance industry reported back for the last quarter of medical insurance company Cigna Corp. Its net profit fell compared with the previous year, but still was higher than forecasts of experts. Additional positives has been the increased internal forecast for 2010 Corporation. - Now she plans to earn 4,1-4,4 per share, whereas previously expected only 3,75-4,15 dollars By the way, this is a very good yield - nearly 13% of current market capitalization. Following the session the quotations Cigna jumped 5.63%. Other industry representatives, had previously submitted a strong report, too, looked better than the market: Unitedhealth Group Inc. added 1,55%, WellPoint Inc. - 1,33%, MetLife Inc. - 0,41%, Express Scripts Inc. - 1,31%, Aflac Inc. - 0,45%, Aetna Inc. - 1,66%.
A strong report for the full 2009-2010 fiscal year on Aug. 5 was presented by one of the largest media companies in the world of News Corp. Corporations have to cope with the problems and came out of the loss of $ 3.31 billion a year earlier, earning 2.64 billion USD This result was achieved through active engagement with customers on television advertising. Forecast earnings for next year was slightly lower than analysts expected, because the company is predicting the continuation of rapid growth - this year it has already done all it could. Day of News Corp. completed its growth at 3.61%, although in the beginning of its session the quotations were considerably higher. For a successful corporation hauled as Walt Disney Co. (0.43%) and Time Warner Inc. (1.29%). The largest company in the U.S. direct broadcast DIRECTV Group Inc. (2.37%) is also able to please investors impressive returns, which managed to obtain due to the increase in the number of subscribers in Latin America and the increasing popularity of pay-TV HD.
Oil and gas companies on Thursday mainly became cheaper. This is not surprising, since the quotations of oil began to fall back on the level of 83 dollars per barrel. (Brent), a correction can be quite deep - that is to be feared. Last month Brent without kickbacks grew from 71 to 83 dollars per barrel., Therefore, be deemed sufficient correction down to 78.5 dollars per barrel. While the capitalization of Exxon Mobil Corp. fell to 0,02%, Occidental Petroleum Corp. - On 1,51%, EOG Resources Inc. - On 0,54%, Hess Corp. - On 0,34%. Better to look BP (+3,27%) and Anadarko Petroleum Corp. (2.71%). The latter refused to pay compensation BP volume of $ 1.2 billion for damage from the disaster in the Gulf of Mexico. "The catastrophe in the Gulf of Mexico could have been prevented, it was a direct result of decisions made mistakes and actions of BP. It is likely that what happened there and malicious actions of the leadership of this company," - said in a statement Anadarko. The growth of quotations BP helped obtain permission from the U.S. authorities to cementing top of the emergency wells.
August 5 U.S. stock indexes not far removed from the levels achieved. Optimists, of which now have a majority, believe that the "bulls" save their strength before the decisive "removal" of quotations up. Pessimists also believe that the rally lasted one month, came to an end, as all major corporations have already submitted their good financial returns, and macroeconomic statistics has ceased to please, - we find that to grow more than anything. In the medium term the market would go to the benefit of a good roll back down, which now awaits the majority, but short-term trend seems to define the Friday data on the labor market. Prior to their publication no decisive action taken would not, because the chances for continued growth (because the market until the "bull") and the rapid decline (the prerequisites for correction formed) is now absolutely equal.
