Office rat

April, 13 Stocks closed the second week of growth; Banks, retail business are the leaders On Thursday stock market finished shortened week by significant increase due to the optimistic forecast by Wells Fargo (WFC). NASDAQ and NYSE indices both grew for 3.9 %; S&P 500 went up with a leap for 3.8 %, and Dow index added 3.1 %. The growth flashed around the market, only four groups from 197 IBD sectors fell down. On the NYSE market the relation between advanced and declined stocks was as of 15 against 2 – due to the plenty of bank stocks and for NASDAQ this relation was as of 5 against 2. The volume of two major stocks grew; here NYSE was leading. It can be explained by huge trading volumes with Wells Fargo and Bank of America (BAC) stocks as well as with other stocks of financial sector. The mere volume of trading with BofA stocks amounted to more than 1 billion of stocks presenting solely the largest volume increase on the NYSE market. Wells Fargo surprised Wall Street having reported about preliminary profit as of 55 cents per share for the first Quarter. Rise of bank shares was caused by the reaction after their profound recession. Friday increase reversed the week from decline into growth. The volume decreased but it might happen because of the shortened week. The most positive news is that now major indices have 5 week’s raising history. The lowest indices for many years were supported by the gradually growing market at last. NASDAQ grew for 31 % against its minimum on March, 9th. NYSE grew for 29 % against its minimum on March, 6th; S&P 500 added 28 %, and Dow - 25 %. Here is one more sign of that economy is getting better: Retails stocks are returning as leading. Aeropostale (ARO) clothing store chain increased for 12 %. In March its comparable sales were beneath the forecast, but the company expects to earn 35 cents per share in the first quarter, much more than the forecast gives. Besides, Buckle (BKE) stocks grew for 10 %. Jos. A. Bank Clothiers (JOSB) increased for 5 % on Thursday and for 20 % on Wednesday.

On Friday stocks demonstrated a reversal from going down to increasing and transformed morning losses into the growth by the end of the day. Eventually NASDAQ increased for 1.2 %. 1% of growth was granted to NYSE Composite and S&P 500 indices, 0.5% - to Dow industry index. In comparison with Thursday level, NASDAQ and NYSE volume fell down for 23 % and 21 % respectively. Friday provided one more proof of the stock market’s strength. Increased number of purchases started prior to closing promoted major indices to the top of their daily range. The week increase of NASDAQ was 5 %, of NYSE – 4.4 %, S&P 500 - 3.3 %, and +3.1 % to Dow. S&P 600 index for small-cap companies had shot up for 6.8 %. It was the fourth consecutive week of growth for major indices. In the case of NASDAQ we see the fourth consecutive week of prominent growth. Technological index grew more than for 25% in this period being ahead of NYSE indices. The flow of positive or “better than expected” economic data conduced to a new upward trend of the stock market. Two reports of Friday morning seemed to threaten this tendency. In March employment market lost 663 000 workplaces, unemployment rate reached 8.5% and is expected to grow further. Unemployment rate went up to its maximum for 25 years, as Department of Labor reports. Analysts forecast that within four or five months we’ll see over 500 thousand of losses of workplaces. Unemployment rate is believed to reach its maximum - 9.5 % - in October, whereas more pessimistic forecast reports about 10% next year. 1 year before a more extended rate, including both part-time and full-time employees, grew from 9.1% to 15.6%. Department of Labor revised January report about workplaces with 86 000 growth. Institute of Supply Management Index – indicator of economic activity in services sector – went down to 40.8. A slight growth was expected. For the first hour of trades this data declined the market. Research in Motion (RIMM) was leading in techs shares. On the late Thursday BlackBerry manufacturer reported about quarter profit which exceeded estimations. RIMM increased for as much as 21 % and was the most traded stock on NASDAQ. In the meantime reserves started decline. On the contrary, golden shares such as Randgold Resources (GOLD) and Royal Gold (RGLD) sharply declined within the last days. Still there are a few opportunities for purchasing shares, because just a few shares formed correct basis and strong start for prices. IBD 100 demonstrated poor 0.2% of growth on Friday and just 1% within a week. Gilead Sciences (GILD) was ahead with 2.28% of increase up to 46.98 in active trading. Medicine manufacturer grew after the positive results of the last stage of clinical testing of the pressure control appliance were reported. Allegiant Travel (ALGT) declined heavily for 3.68 down to 45.42. Airline service operator reported about the pop as of 15.8 % in the year traffic. The level of return of 10-year’s Treasuries increased for 2.90 % from 2.75 % on the market of state obligations on Thursday’s closing.

On Friday stocks went down and closed the third week of growth Weekly review of the USA market from March 30 Stock market closed Friday with significant losses, unpromising economic data and tough comments from the major bank officers of the state. NASDAQ and NYSE indices decreased for 2.6 %, S&P - for 2 % and Dow - 1.9 %. Falling stocks overplayed growing stocks in approximate relation 3 against 1. The volume of two major exchanges dropped. But there was no collapse for the best market stocks, and just a few decreased significantly. After having the meeting with Obama a number of CEO managing problematic financial institutions announced moderate forecasts for the March results after two strong months. Normally day loss in the rate of 2% or 2.6% would be too much. But the market is still volatile. Friday decline is not considerable against the day chart. Friday losses could not prevent major indices to register profit within the third week in succession. The week gave Dow index 6.8 % of increase, S&P 500 +6.2 %, Nasdaq +6 % and +5.5% for NYSE index. The market performed in a positive manner the last week. The volume dropped when prices were falling and the volume grew when the market grew. There were no days of distribution. The market closed after reaching its maximum twice – on Monday and Thursday. The market gained more than 10% of increase against the session of March 16 – the first distribution day starting from March 12 when correction finished. Some concerns were caused by a too slight grow of IBD 100 index – just 4.4 % within the week – being behind expanding indices. It continued the tendency of current rally. Finally, the market rally will require leaders. The index of Emergency Medical Services (EMS), declined for 6 %. Volume of trades increased against the average value significantly but fell by the end of Friday. The index of Monro Muffler Brake (MNRO) dropped for 7 % in active trading. Stocks of tires shops and services ended 3 weeks growth. According to economic news, consumers’ revenues decreased for 0.2 % - a little worse than it was expected. Private expenses increased for 0.2 %, after 1% of January increase. РСЕ (personal consumption expenditure deflator), the favorite indicator of the FR for inflation, grew for 1 % in February – more than it was expected. РСЕ core increased for 1.8 % in February exceeding the forecast. Reuters/University of Michigan Consumer Sentiment Index gained 57.3 for March. In February it was 56.3. It is little better than expected but near the worst value of the last 30 years.

Major indices closed the week by decrease, review of the USA market On Friday stocks fell down and closed the week of their growth. S&P 500 index declined for 2%, NYSE marked 2.1% decrease, NASDAQ was cut to 1.8% and Dow industry index – for 1.7%. Small-cap companies experienced a heavier decline; S&P 600 index lost 3.2%. NYSE volume grew for 25% and at the same time NASDAQ volume increased for 7% in comparison with Thursday level, on the date when options expire. On March 16 S&P 500 and NASDAQ had a more serious loss. Two days of heavy decline within such a short time is not a good sign. One more reason for trouble is that days of distribution came very soon after the signal for market decline was received on March 12. These two days of distribution conduced to a negative mood in spite of general growth of the market within the week. Besides, by the date of closure NASDAQ fell down to the average 50-days level. Dow increased for 0.8 % within the week, S&P 500 - for 1.6 %, NASDAQ +1.8 %, +2.4 % NYSE. S&P 600 lost 1.5 %. As it was mentioned before, to a serious extent the market was supported by financial stock’s recovery and in a lesser degree – by growth of technological stocks and other sectors. On Friday drop of these stocks decreased the value of major indices. The same day one of the leaders of recent financial growth - the Bank of America Corporation (BAC) – dropped to 11 %. Branch of the American International Group filed a lawsuit against subsidiary of the BAC - Countrywide Financial – which undertook loan modifications. Stocks of other major banks also fell down. Techs stocks dropped as well; negative forecast from Sony Ericsson impacted the sector. Cell phone manufacturer reported they expect losses in the first quarter because of falling consumer demand. Ericsson (ERIC) declined for 11 %. Stocks of power, transport and machinery industries decreased as well. IBD 100 index declined. Leading stocks of IBD index lost 1.2 % and had not increased during the week. Some shares with the highest rank conduced to positive expectations. A few stocks were able to sustain an upward trend. Starent Networks (STAR) stocks dropped for 1.03 % by 16.25. CL King Shares decreased sharply after a period of sustainable growth. NVE Corp. (NVEC) fell down to 31.14 for 2.59 %. Stocks of sensor devices manufacturer Spintronic lost 21 % from their maximum value achieved within 52 weeks. Meanwhile, Federal Reserve Chairman Ben Bernanke announced on the bank conference that in future paying bank compensation packages will be under the focus of particular attention. According to him, this policy “can create perverse incentives” which damage banks. His notes came after the discussion about bonuses paid to officers of American AIG.