Market Analysis

Most quotations of American shares rose on Wednesday on the surprisingly positive statdannyh on orders for durable goods, reported Bloomberg. The positive impact on the market also had a quarterly record company Oracle.

By the end of the trading growth slowed, while the index for the Dow Jones Industrial Average followed the fall as the Fed has not fulfilled the expectations of investors and not expanded the scope of redemption of bonds.

futures on U.S. stock indexes rise on Thursday: September contract on the Standard Poor s 500 by 8:30 PM EDT gained 1.07%, while the Dow Jones Industrial Average - 0,88%.

Federal Reserve System (FRS) the USA on Wednesday decided to maintain the target range of the base interest rate from 0% to 0.25% per annum. In addition, the U.S. Central Bank did not change the amount of redemption of bonds worth $ 1.75 trillion, saying that it is not necessary, because the recession is weakening.

Information received after the FOMC meeting in April, confirms that the pace of decline slowing economy. Conditions in financial markets in general have improved in recent months, - says the paper for the meeting of the Committee on Open Market (FOMC).

Orders for durable goods in the United States unexpectedly rose in May - at 1.8%, according to the Ministry of Commerce. This is a record rise in December 2007, while a month earlier were reported to increase 1,8%.

At the same time, analysts predicted decline in the last month at 0.9%. Orders excluding transportation equipment increased by 1.1%, while the experts were expecting a decrease of 0.5%.

Strong data on orders and good financial statements, and Oracle Monsanto very positive for the stock market, - said Governor of Pioneer Investment Management, John Kari.

Published data indicate the likelihood of weakening economic slowdown, say experts. GDP United States could return to growth in the second half of 2009, a steady rise in consumer spending could push businesses to increase investment and production after the stocks of goods in warehouses have fallen significantly. Nevertheless, limiting the impact on the economy will have a rise in unemployment and tighter credit conditions.

At the news of more than 1.8% went shares General Electric and Caterpillar.

World leading developer of software for Oracle databases on the outcome of February-May on record revenues decline by 5% and net profits by 7%, but nevertheless, the results exceeded forecasts of the market. The company believes that the figures were much better than expected, and even show signs of increasing demand in recent months.

Quotations

Oracle shares jumped 7%.

The value of securities

Monsanto, one of the largest suppliers of grain in the world, fell by 4% after growth in the first half of the session at 3.5%. Shares rise was due to the fact that the company's profit last quarter was $ 1.25 per share, with an average forecast of analysts at $ 1.18 per share. But investors were disappointed that the leadership of Monsanto predicts a reduction of profits if the company will not be ableto offset 50% decline of revenues from the sale of herbicides through the seeds.

In addition, the expensive shares of aluminum giant Alcoa (at 2.1%) and Freeport McMoRan Copper Gold (at 3.4%) against the backdrop of rising prices for base metals in London.

Price

Citigroup shares rose 1%. The Bank has received from U.S. government loans in the amount of $ 45 billion, is going to increase the base salaries of its employees by an average of 50% to compensate for the reduction and the partial abolition of the annual bonuses. Thus the bank tries to save the most valuable stuff.

Index Dow Jones Industrial Average, on the basis of trades dropped 23.05 points (0.28%) - up to 8299.86 points.

Standard Poor s 500 on Wednesday, rose by 5.84 points (0.65%), reaching 900.94 points. At the end of session 50-day moving average of this indicator has exceeded its average over the previous 200 days for the first time since December 2007. In the technical analysis of the phenomenon called the golden cross and is considered a signal of dominance of bulls in the market.

Nasdaq Composite index rose to 27.42 points (1.55%) - up to 1792.34 points.

Reducing

Dow Jones since the beginning of the year was 5,43%, SP 500 - 0.26%. At the same time, Nasdaq has added this year, 13,65%.

Scenario and forecasts