Trading on the U.S. stock market on Tuesday, October 19, held in a negative way. Sales observed since the beginning of the session - set the tone for trading high-tech company Apple Inc. and International Business Machines Corp. (IBM), the financial statements are not pleased investors. In addition, an unexpected surprise for the market was the decision of the Central Bank of China to raise from 20 October a key interest rate by 0.25 percentage points - Up to 5,56%. Thus the regulator is trying to slow down inflation and prevent the adverse effects of rising asset prices. Slower growth in the Chinese economy will affect the reconstruction as the world economy and, in particular, the U.S., for which China - a key trading partner and creditor. It is not surprising that on such external background players prefer to start record profits, and did so aggressively. Did not save stock indices even approaching publication of the report the Fed "Beige Book" and was unexpectedly strong macroeconomic statistics from the housing market.
Following the auction on October 19 the Dow Jones index dropped by 165.07 points (-1.48%) - to 10,978.62 points, NASDAQ fell 43.71 points (-1.76%) - to 2436.95 points, S & P dropped to 18.81 points (-1.59%) - up to 1165.9 points.
First published their financial reports, IBM and Apple - immediately after the close of the pre-session. Apple's net profit up to the 2009-2010 fiscal year that ended Sept. 25, 2010., Grew by 70% to $ 4.013 billion dollars, while revenues increased by 52%. But investors were expecting more from the company because over the last eight quarters she was able to significantly interrupt the projections. Were not too successful and selling tablet iPad: it was sold about 4.2 million copies, while industry experts count on selling at least $ 5 million. But ahead of Christmas and New Year, so that the trend in sales is likely to be restored. In the meantime, the paper Apple fell 2.68%.
IBM report was stronger: III quarter of 2010. its net profit rose 12% compared to the previous year and amounted to 3.6 billion dollars, while revenues rose by 3%. However, investors wary continuing decline in the number of contracts for services - this trend is already stored in the third quarter in a row. As a result, IBM quotes collapsed at 3.36%, and for them slipped and Dell Inc. (-1.17%) With a Hewlett-Packard Co. (-1.13%). Essentially lost in the price and the corporation is Microsoft (-2,79%), reason for selling shares of which was a message of resignation from the company's chief software architect Ray Ozzie. The reasons for the resignation of 54-year old R. Ozzie is not called, but the American media thinks that they might be at odds with the head of the Windows Steven Sinofsky.
Leading U.S. banks have demonstrated multidirectional dynamics. The Goldman Sachs Group Inc., Although it reported a decrease in net profit in the III quarter of 2010. in 1,7 times - to 1.73 billion dollars, went up on Tuesday at 1.96%. The fact that the experts expected even more profits fall - up to 1.33 billion dollars, but the bank managed to beat market forecasts thanks to cost-cutting program.
