With the movements of the indexes in a narrow range and an excess of optimism is leading the session on Wall Street today. Nearly an hour after the start of trading Dow Jones registered a growth of 0.25% to 12,013 points, S & P 500 has increased by 0.11% to 1255 points and the Nasdaq fell by 0.25% to 2679 points. The investors monitor the events in Italy, whose prime minister Silvio Berlusconi is facing growing pressure to resign. According to rumors Berlusconi’s withdrawal is a matter of hours, although he himself denied in your Facebook profile information from the press. The rumors of the resignation of Italian Prime Minister came shortly before a key vote on the budget and financial reforms in the country’s parliament, which will be held tomorrow. Meanwhile, yields on Italian 10-year bonds rose to a record high 6.68%. So take the country towards Greece, Portugal and Ireland have already passed this way. Previously, the European Central Bank (ECB) warned that it can stop to buy Italian bonds, if the government does not approve the promised financial reforms.

The new week began with strong optimism about the stock market indexes in the U.S.. The main reason it was announced acquisition of the assets of German company Deutsche Telekom in the U.S. by AT & T. Thus will be created the biggest player in the wireless technology in the U.S. market. The index of blue-chip Dow Jones Industrial Average advanced 200 points in the first ninety minutes of the first session of the week, increasing to 10,052 points. The shares of telecommunications giant Verizon Communications and AT & T are among the most actively traded issues on the composition of Dow Jones, as they rise in price by 2.3 and 1.3 per cent. The broader index S & P 500 touched the level of 1300 points for the first time in a week, but eventually gave up 1298 points. This represents an increase of the index by 1.5 per cent over the closing value on Friday. Nasdaq Composite Index moves with the highest growth of all three indicators, adding 1.9 percent to 2693 points. The crude oil price is rising by 1 per cent of the stock exchange in New York, as its price is 102.07 dollars a barrel.

Proposed by the Obama budget is marginally positive for the credit rating of U.S. in the short term, but “almost no chance Congress to approve it without major repairs, says Moody’s Investors Service. In the long term budget proposal offers no solution to the key structural problems of social programs and pensions, says Stephen Hess, senior analyst at Moody’s. Adequacy of estimates in the plan are also in question, he said.
“These weaknesses, combined with the still high debt levels are an indicator that will require additional measures to improve government finances and debt position in the long run,” says Hess. The credit agency, which recently warned of increasing probability of placing a negative outlook to the rating of the U.S. which is currently the highest possible – AAA, noted that this year’s projected budget deficit of 10.9 percent of gross domestic product ( GDP) of the country is the most serious since World War II and is largely a consequence of extending the tax incentives introduced by former U.S. president George Bush. It is however an open question whether the government will raise taxes for the rich since 2012, the expiry of the current tax relief. The credit agency questioned some projections included in the draft, particularly for discretionary government spending except for national security, which the administration will decrease by 11% in nominal terms in 2021.
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Since nobody wants to stand in the way the momentum “freight train” on Wall Street, the professionals have to face the paradoxical problem: How to make money in a market that moves in one direction only. It turns out that this is not as easy as it seems. The low volatility may be a dream for every investor, but it causes confusion among traders and consultants who rely on market volatility, using the appropriate hedging strategies. The portfolio managers who use strategies based on simultaneous purchases and sales (in short) are also affected by lack of market volatility, which would affect the profitability of individual investors. The relentless pace of the market in which the S & P 500 is trading above its 50-day average for nearly 111 sessions, to some extent makes investing more complex.
“Imagine you’re a strategist,” said Rick Bensinor, chief market strategist at Dahlman Rose. “It is disappointing that the market is constantly rising. We know that this is somewhat artificial, but its resistance is apparent and may continue for some time. ”
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The trading session in the U.S. initially began with divergent movements of the indices under the influence of big sales in the Asian region today and discussions about bailout of Ireland. The strong decline in new construction in October and data understated inflation in the U.S. also contributed negatively to the index at the beginning of the session. An hour later, however, price-weighted Dow Jones IA index, increased by 0.1% to 11 034.86 points, while the broader stock market benchmark S & P 500 added 0.4 percent to 1,182 points, led by shares in the consumer sector. On the Nasdaq stock exchange Nasdaq Composite leading index increased by 0.5% to 2 482.91 points. For the predominance of purchasers of shares helped the news that carmaker General Motors increased by 31% the number of shares that will sell through its initial public offering (IPO). The investors will be offered 478 million shares in the carmaker to the originally planned 365 million shares, writes CNN. It is expected the IPO to bring it revenues of nearly $ 20 billion. Yesterday, General Motors and increase the price band of its IPO to 32-33 dollars per share, compared with the previously announced 26 to 29 dollars per share. Data on inflation in the U.S. today showed that consumer prices rose 0.2 percent on a monthly and 1.2% yoy in October, which was less than expected.
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The U.S. indexes started the session in negative territory Tuesday after disappointing results from Dow Chemical and Procter & Gamble and the adverse economic news worsened investor sentiment. Profits to P & G and Dow Chemical was less than analysts’ expectations, leading to a decrease in their papers by 3.4 percent to 59.94 dollars and 10 percent to 25.50 dollars. Basic data from the U.S. also contributed to the deepening decline in the indexes after the planned sales of existing homes in June celebrated the unexpected drop of 2.6 percent in the forecast growth of 0.9 percent. Individual factory orders for the same month fell 1.2 percent, which was worse than the consensus, which showed zero change. The positive pole of the papers ran Pfizer Inc, which rose 5.6 percent to 16.34 dollars after the manufacturer of the drugs produce better than expected profits and make a positive long-term prognosis. This somewhat helped the market recover some of its losses.
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The first session on Wall Street this week started with a strong growth indexes, but the positive mood could not be kept until the end of the day. Initial support came after a strong rise in European markets, where exchange measurements progressed with more than 2%. On the other hand, market participants were attracted by lower prices of U.S. stocks, resulting from sales in the last two weeks. On the economic calendar ISM index for services for June recorded a decline from 55.4 to 53.8 points, which was below analysts’ expectations for a weak correction to 55.2 points. Enterprise-level Microsoft bulls lead among blue chips, rose 2.35 percent to 23.82 dollars per share. Second Home Depot recorded the largest decline in the Dow Jones Industrial Average, losing 1.7 percent to 27.30 dollars. The energy sector remained the most stable after shares of British Petroleum advanced 8.7 percent to a 31.9 dollars per share. Exxon Mobil rose 1.5 percent to 57.46 dollars, while Chevron advanced by 0.37 percent to 67.56 dollars. Financial sector Bank of America rose 1.6 percent to 14.05 dollars, and JPMorgan added 1.4 percent to 36.33 dollars per share.
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The unexpected increase in new applications for unemployment benefits in the U.S. last week renewed fears about the state of the labor market and the recovery of U.S. economy. As a result, all three major indexes on Wall Street took down sharply in early session today. From the sale of shares suffered most manufacturers of durable goods, including Caterpillar, Boeing, Honeywell and Deere. Their share dropped by over 1% in morning trade. The index of 30 largest and often traded U.S. companies Dow Jones IA decreased by 0.7% to 10 338.19 points an hour after the start of the session. The broader S & P 500 lost 0.6 percent to 1 107.61 points and Nasdaq Exchange main index Nasdaq Composite fell by 0.7% to 2 291.05 points. All three stock closed yesterday Measure volatile session of the neutral zone after repeatedly changed its direction of movement. The series of U.S. economic data today showed that prices of consumer goods fell for the second consecutive month in May, and initial unemployment benefits rose unexpectedly last week. Meanwhile, it was clear that the growth of imports at the beginning of this year has increased and the negative balance on current account of the country to 109 billion dollars in the first quarter. Shortly thereafter came the data for the index of leading indicators, which predicts the development of the U.S. economy in the future. He rose for the 13th time in 14 months, adding 0.4 percent on a monthly basis in May after April remained unchanged.
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Last week was one of the most tense in the history of Wall Street not only because of technical error caused a record drop of 9 percent of the index Dow Jones IA, but also because it deleted all the profits of the three major U.S. indexes made by the beginning of this year. The adjustment of the securities markets may continue this week if it announced an unprecedented rescue plan for the euro area economic data for the U.S. and quarterly reports to stock companies bring comfort to investors, says CNN. Among large American companies will announce their quarterly reports in the coming days are Cisco and Walt Disney, composing the representative index Dow Jones IA. Meanwhile, go forth series of economic data on labor market, consumer confidence and retail sales, which analysts say will confirm recovery of U.S. economy. At the end of last week’s data on the labor market showed that the U.S. economy has created 290 thousand jobs in April, which was much more than expected. However, the markets attention remained focused on the financial problems of the euro area and in particular Greece, Spain, Portugal and Ireland. They pulled down the rate of the euro against the dollar to 14-month low of 1.2595 dollars per euro on 6 May and expensive dollar lower oil prices and the number of raw materials. Computational error in the electronic trading platforms on the New York Stock Exchange on Thursday hit the shares of 300 companies that Dow Jones IA fell by nearly 1,000 points in less than 10 minutes, and this is the biggest drop in its historical perspective. Less then two thirds of the decrease was deleted, but volatility remained high trade by the end of the week.
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Friday’s session began with reductions for the main indexes of Wall Street, although two of the companies in the Dow Jones IA – General Electric and Bank of America, announced better than expected financial results for the first quarter. Data on housing in the U.S. in March, which came out before the start of the session also proved to be much better than forecasts. However, the index of the 30 largest stock exchange and frequently traded companies Dow Jones IA decreased by 0.5% to 11 093.33 points and a half hours after the start of the session. The broad measure of stock S & P 500 lost 1 percent to 1 200.61 points and the index of companies by the exchange Nasdaq – Nasdaq Composite, decreased by 0.8% to 2 496.73 points. Session on Thursday brought minor changes to the index after three disappointing news for initial unemployment and industrial production. Shares of industrial conglomerate General Electric dropped by 2.4 percent to 19.03 dollars on the New York Stock Exchange after the company reported 18 percent drop in profit for the first quarter to 2.3 billion dollars, or 21 cents a share. Analysts had expected a smaller profit per share of 16 cents. The largest U.S. bank Bank of America, in turn, said it issued a profit of 3.2 billion dollars for the first three months of the year, or 28 cents a share. This was three times more than market forecasts, but shares of the bank dropped by 3.6 percent to 18.75 dollars on the New York Stock Exchange.
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