On Monday, active purchases of International Business Machines, American Express and Caterpillar shares sustained the increase of Dow Jones Industrial Average index to new closing high of this year. The growth was a large-scaled: DJIA rose by more than 200 points at that, 29 from 30 components of the index surged according to the trading results. Whereas, there were no specific factors such as economic data or earnings reports, which could instigate the hike. Some sources in Wall Street believe that improvement of investor sentiments became growth accelerator. Stock indices have been closing deals with the gain since Wednesday, when the Federal Reserve System of the USA reported about monetary policy. On Monday, more volatile shares of financial companies became the growth leaders that reflects more and more popular opinion that for many companies of this sector the worst times have passed. According to the session results Dow swelled by 203.52 points or by 2.03% to 10226.94, having recorded a new closing high for 2009. For four days index ticked up by 4.7% and closed at the highest level since 3 of October 2008 on Monday. Nasdaq Composite index soared by 41.62 points or by 1.97% to 2154.06 points. Standard & Poor\'s 500 index was advancing for the sixth consecutive session, moved up by 23.78 points or by 2.22% to 1093.08 points. The financial sector shares went up in price by 3.6%.
The financial companies partially related to the consumer sector behaved themselves rather active. American Express shares jumped by 1.84 USD or by 4.9% to 39.05 USD. Shares of American Express and credit card companies have been rising confidentially for the last several days, after forecasts concerning possible conclusion of the credit recession were read at the conference in Boston.
Apart from the financial companies engineering and manufacturing companies approved themselves considerably because investors boosted their expectations regarding the world economy. IBM shares increased by 2.51 USD or by 2% to 126 USD, while Caterpillar shares were up by 2.40 USD or by 4.2% to 60 USD.
Regards,
Analyst: Vladimir Donin.
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