FX.co ★ The US stock market review

The US unemployment rate has decreased on Friday for the first time since April, 2008, this led to a rally in the stock markets.
Stocks fell from its maximum levels during the previous sessions, but increasing of the weakened investors’ risk appetite was caused by the released data by U.S. Department of Labor, that led to new high levels in 2009.
According to the released data, the reduction of Nonfarm payrolls in the USA tertiary sector in July slowed down and unemployment rate unexpectedly fell. These are new illustration of the fact that recession in the USA economy comes to the end. The Nonfarm payrolls in the USA tertiary sector was reduced to 247 000 in July, that became the lowest indicator decrease since August, 2008. Economists expected that these figures will be reduced to 275 000. Nevertheless though to historical measures reduction of Nonfarm payrolls were large-scale in July, the data specifies that the reversal point for the US economy is approaching. From the recession beginning in December, 2007 the US economy has lost 6,7 million workplaces.
Besides, the US president Barack Obama announced at press conference on Friday that the lowest point of recession is already behind that indicates the signs of the country recovery.
As a result, Dow Jones Industrial Average closed up 114 points to 9370. Nasdaq rise by 27 points to 2000, S&P 500 closed with increase by 13 points at the 1020 level.
As to the financial reporting publications, AIG has informed on profit in $2.30 per stock, after multibillion losses and receipt of huge public loan to avoid bankruptcy.

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Best regards,

Analyst: Vladimir Donin.