Information that Berkshire Hathaway company, owned by Warren Buffett, is going to buy the remaining part of Burlington Northern company, led to increase of transport sector shares, while the decline of prices for Intel, SanDisk shares and other “blue chips” interrupted the general growth of the stock market.
Dow Jones Industrial Average index dropped by 17.53 or by 0.18% to 9711.91 points, it has become the second fall for the last three sessions. Intel shares eased by 51 cents or by 2.7% to 18.50 USD after Morgan Stanley lowered the rating of semiconducting material producers sector, warned that companies’ stocks are swelling and it can be surplus of supply at the market. SanDisk shares tumbled by 55 cents or by 2.6% to 20.31 USD.
Apart from fears about process engineering sector, concerns that Berkshire Hathaway Inc. is going to buy the remained 77% of Burlington Northern Santa Fe Corp. at the price of 100 USD per share became important Tuesday’s news. The deal includes obligations for 10 billion USD. The result is that Burlington Northern shares rose by 20.93 USD or by 28% to 97 USD, while Dow Jones Transportation index jumped by 5.3%.
Transport companies share prices moved up in spite of oil prices rising by almost 2% due to which shares of energy and raw companies gained too.
According to the trading results Standard & Poor\'s 500 surged by 2.53 points or by 0.24% to 1045.11 points. Technological Nasdaq Composite index advanced by 8.12 points or by 0.4% to 2057.32 points.
In spite of small quotations soar the market participants notice a lot of fears concerning the economy which still exist at the stock market. Two-days meeting of the US Federal Reserve System will be finished on Wednesday. Besides, the labour market data will be released daily till the end of the week.
Taking into account a huge growth, which has been seen at the US stock market during last eight months, as S&P 500 index climbed by 55% since the beginning of March, and also consolidated reporting period is to be over, new US data can specify the direction for trading as far as the year ending.
On Tuesday, the trading was slower than the average level because of the FRS meeting.
Best regards,
Analyst: Vladimir Donin.
