United States: the Fed”s decision to stop falling indices

Written by admin on February 25th, 2010

 

Wednesday, January 27, the main American stock market indices, despite the disappointing data from the housing market, completed auctions growth. Federal Commission for open markets U.S. Federal Reserve decided to maintain the base interest rate in the target range of 0% -0.25% and the discount interest rate at 0,5%. Thus, according to statements by the regulator, the base interest rate can be kept extremely low as long as necessary for economic recovery time. In addition, the Fed will continue to buy problem mortgage-backed securities and mortgage debt obligations.

Sales of new buildings on the market in December reached a nine-month minimum. Thus, it is estima1000ted that the U.S. Census Bureau, the sale of new dwellings for the period decreased by 7,6% to 342 thousand, with the anticipated growth of up to 370 thousand

According to the Energy Information Administration (EIA), oil reserves over the past week fell by 3.9 million barrels to 326.7 million barrels. Analysts expect an increase in reserves at 1.4 million barrels. Gasoline inventories for the period rose by 2 million barrels, while distillate stocks rose 0.4 million barrels.

As a result of trades barometer of blue chips "Dow rose 0,411% to a value of 10 236.16 points, more" broad "SP 500 index rose by 0,488% to a mark 1 097.5 points. Rate with a large proportion of high-tech stocks Nasdaq added value of 0.802% to 2 221.41 points.

Equities world"s largest producer of bulldozers and excavators Caterpillar "thinner" at 4.32% after the company"s representatives announced earnings forecast for 2010. Thus, earnings per share as a result of the current year will be $ 2.50, while analysts expected the company during the reporting period will earn $ 2.71 for paper.

 

Paper aircraft manufacturers Boeing built up at 7,31%. Net income for the results of the fourth quarter reached $ 1.27 billion, or $ 1.75 per share, compared with a loss of $ 86 million, or 12 cents a paper a year earlier. Excluding one-time cost earnings per share were $ 1.77, with an average forecast of analysts of $ 1.36.

Quotes Symantec rose to 0,81%. According to a report of software company, net income for the third quarter to end on Jan. 1 was $ 300 million, or 37 cents per share, compared with a net loss of $ 6.82 billion, or $ 8,25 on the paper a year earlier. For certain deductions earnings per share reached 40 cents, or 3 cents above the average forecast of analysts. Sales of antivirus vendors for the period increased by 1%.

The dollar strengthened its positions against the euro and Japanese yen. Crude oil futures for February delivery fell $ 1.04 to $ 73.67 a barrel, a fixed-term contracts for gold for February delivery fell $ 13.80 to $ 1 084.50 per troy ounce. Yield ten-year Treasury bonds fell from 3.62% to 3.60%.

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