On Monday, 25 October, the U.S. stock indexes rose. Purchases helped the outcome of the summit in South Korea, where the finance ministers of the "big twenty" have decided to refrain from currency and trade wars, which certainly would add the stability of the global economy. In addition, very short time left before November, when the Federal Reserve System (FRS) the USA may disclose details of the program of quantitative easing monetary policy, which should spur demand for assets, since the dollar will depreciate at the same time. Finally, we were pleased with the National Association of Realtors (National Association of Realtors, NAR) USA. According to its figures, sales of homes on the secondary market in the U.S. in September 2010. increased by 10% to 4.53 million units, the experts also hoped to 4.3 million units. As a result, prevent the continued growth of the U.S. market was virtually nothing.
Following the auction on Oct. 25, the Dow Jones rose 31.49 points (0.28%) - to 11,164.05 points, NASDAQ - at 11.46 points (0.46%) - to 2490.85 points, S & P - by 2.54 points (0.21%) - to 1185.62 points.
Most of the largest construction companies in the data from the secondary housing market has reacted positively, as there is reason to believe that the increased activity of buyers will have an impact on the demand for new housing. However, not all market participants are optimistic, because it is believed that problems with mortgage bonds will lead to a cooling housing market because of increased risk. True, the primary market, this should not touch - the new home legally clean and safe, but the pent-up demand from vtornichnogo housing market should be extended to new construction. Growth finished the day Lennar Corp. (+0,54%), DR Horton Inc. (+0,66%), KB Home (+0,47% and Beazer Homes USA Inc. (+2,17%). Fell PulteGroup Inc. (-1,58%), Toll Brothers Inc. (-1, 3%) and Hovnanian Enterprises Inc. (-1,36%).
In the banking sector following a statement by Fed chairman Ben Bernanke has prevailed decline. Several respected U.S. banks in recent weeks been accused of abuse in foreclosure. Oct. 25 B. Bernanke said that the regulators are very serious consideration to such violations. In particular, he said that regulators carefully examine internal documents of the financial institutions for systematic violations of procedures for foreclosure. Preliminary investigation results will appear in the next month, added B. Bernanke.
Against this backdrop, shares of JPMorgan Chase & Co. fell 1,67%, Bank of America Corp. - On 2,45%, The Goldman Sachs Group Inc. - On 0,23%, Wells Fargo & Co. - On 1,49%, PNC Financial Services Group Inc. - On 1,32%, The Bank of New York Mellon Corp. - On 1,35%. Only Citigroup Inc. stood out among this mass, the result - an increase of 2.43%. Support was provided by raising the recommendation on the shares of the bank's analysts Goldman Sachs Group, who believe that Citigroup over the next 12 months is able to grow by another third.
Following the industrial metals prices pulled up the leading metallurgical companies in the U.S.: Alcoa Inc. added 1.26% of the cost, Southern Copper Corp. - 1,92%, Freeport-McMoRan Copper & Gold Inc. - 2,15%, AK Steel Holding Corp. - 0,15%, Arcelor Mittal - 0,78%, Steel Dynamics Inc. - 1,75%. The upward trend in the metals market may persist, despite the risk of an early downward correction of the maximum level of 2010. Increased activity in the housing market (particularly primary) to support quotations.
One of the leaders of the session was a manufacturer of fiber optic cables CommScope Inc., Whose products are used by the largest representatives of the telecommunications industry. On Monday, it was reported that the manufacturer is in talks with the management company Carlyle Group to sell her business for 2.98 billion dollars expected, Carlyle Group will pay U.S. $ 31.5 per share of the acquired company, ie 36.25 % higher than the close of trading last Friday. The growth potential of 25 October was not fully implemented, and the rising cost of CommScope confined 30.45%.
