On Wednesday Dow Jones Industrial Average demonstrated a growth the seventh sequent month session amid favorable report on Intel company profit. At the same time, Dow index strengthening was not too big, besides on Wednesday Standard & Poor's 500 index upturn stopped which was lasting during 6 days. It is related to that disappointing economic forecast of the US Federal Reserve System put aside the optimism concerning the financial reports.
DJIA obtained 3,7 points or 0,04% to 10366,72 points. Nasdaq Composite rose by 7,81 points or by 0,35% to 2249,84 points demonstrating a consolidation during the seventh sequent month. S&P 500 lost 0,17 points or 0,02% and reached 1095,17 points losing the chance to show the most positive reinforcement from October 2006. Among the growth leaders were the technical sector shares after that Intel - computer chips producer presented the best quarter financial results for the whole 42-year history of the company’s existence. The company’s shares jumped by 35 cents. The Intel report is considered by the investors as an approval in favor of that companies followed the example of consumers and started buying new computers actively. And the company’s results gave a good support to prices of the technical sector shares.
Cisco Systems shares gained 65 cents or 2,8% touching 23,74 dollars. The shares of Microsoft rose by 31 cent, or by 1,2% moving to 25,44 dollars. Hewlett-Packard shares increased in price by 57 cents or by 1,2% to 47,34 dollars.
The fears on the labor and housing markets emphasized the June minutes published on Wednesday of the Open Market Committee meeting. The minutes pointed out relatively moderate worsening of the economic prospects in the USA. Apart from this, the presented minutes testified about rising estimates of the FRS directors regarding the necessity to run further measures of economic stimulation within the monetary policy in case of new serious signs economic activity pace lowering. According to the investors the published data did not bring surprises to the investors , amid this they served as a reminder about economic problems of the USA. The released data also pointed to the existing difficulties. In particular, the US retail sales reduced in June the second sequent month while the increase of commodity reserves in the companies turned out to be less significant than expected.
The retail sales report of the USA put pressure on Home Depot shares which demonstrated the weakest dynamics among all Dow components falling by 36 cents or by 1,3% to 28,28 dollars. J.P. Morgan shares leveled down by 13 cents to 40,35 dollars and shares of Citigroup lowered by 9 cents or by 2,% to 4,21 dollars, while the price of Bank of America shares stood unchanged – at 15,67 dollars rate.