On Friday the market was consumed by the fears that 6-month rally of stock quotes could be excessive, in view of the economic conjuncture development during this period. As a result the investors were selling the shares of the companies which quotations showed the dynamics above the market level in the 3rd quarter, including Caterpillar and American Express. Research In Motion was one of the leaders of falling among the technological companies.
DJIA decreased by 42,25 points or 0,44 %, to 9665,19 points on Friday. Thus, index fall was fixed following the results of the 4th of last 5 sessions. For the past week the index lost 155,01 points, or 1,58 %. DJIA was rising during the last two weeks, and ticked up by 1,78 % from the beginning of September.
Standard and Poor\'s 500 dropped 6,4 points or 0,61 %, to 1044,38 points on Friday, and on week – 23,92 points or 2,24 %.
Among the DJIA components, Caterpillar shares slumped by 0,65 dollars or 1,3 %, to 51,2 dollars, American Express – by 0,78 dollars or 2,3 %, to 33,07 dollars, Wal-Mart – by 1,23 dollars or 2,4 %, to 49,47 dollars.
Nasdaq went down following the trading results on Friday by 16,69 points or 0,79 %, to 2090,92 points, and following the results of a week – by 41,94 points or 1,97 %.
Research In Motion shares fell in price by 14,15 dollars or 17 %, to 68,91 dollars. The company income for the 2nd quarter and forecast for the 3rd disappointed Wall-street.
Unilever stock quotes lost 0,2 dollars or 0,7 %, to 28,14 dollars. The company reported about its intention to acquire the personal care business of Sara Lee business for 1,88 billion dollars to strengthen the positions in Western Europe and also in Asia. It is the first M&A deal for Unilever from the moment Paul Polman assumed the position of the company’s general director. Sara Lee shares raised in the price by 0,67 dollars or 6,4 %, to 11,21 dollars – their quotations reached the highest rate since November 4, 2008 on closing.
The macroeconomic data published last week, including unfavorable information on the durable goods orders and new home sales, became a major factor of stock indexes fall.
Considerable number of the various companies replaced each other as locomotives of the market growth during the last months. The shares of industrial companies and the companies of materials sector were leaders of growth during the last period. The stock value reduction of the sectors’ companies was rather considerable on the last week. Anyhow, the market participants mainly do not expect large fluctuations of the market till the end of the year.
Regards,
Analyst: Vladimir Donin
