The fed is ready to raise



Trading environment us stock indexes finished a small growth after a serious decline in the first half of the day, after the publication of the minutes of the last fed meeting showed the divergence of views of the officials on the issue of raising interest rates. Most sectors in the S&P500 closed in positive territory, led by utilities and financial companies. The dollar continued to decline against the Euro, losing 0.15 percent (1.1292 to). According to reports, the Federal Reserve, there is a split over whether to raise interest rates in the near future. The General view of officials was that the worst fears were not realized, in particular the vote on the withdrawal of Britain from the EU has had a significant impact on the American economy. However, the June report on the state of the labor market not too encouraged by the monetary authorities. The Committee again took the position that it is flexible in its decisions. The reaction of investors to the news was positive. The oil reserves in the U.S. last week fell by 2.5 million barrels. This is according to the U.S. Department of energy. Against this background, oil quotations of mark Brent have grown on 1,26%. Cisco Systems Inc (CSCO) will fire about 14 000 employees, representing nearly 20% of global state of the network-equipment maker, reports the news site CRN, citing sources close to the company. Cisco is expected to announce layoffs in the next few weeks. This move marks a reorientation of the company for the production of software. The message became the reason of falling of the prices of the company’s shares is 1.29%. Target Corp. (TGT) reported 2Q profit of $680 million ($1,17 per share) compared to $753 million (of$1.18 per share) a year earlier. Operating profit was of $1.23 per share against $1,22. The revenue for the period fell by 7.2% to $17.4 billion Expected profit of $1,12 per share on revenue of $16,18 billion In the current year, the company expects to earn $4,80-5,20 per share against a previous forecast of $5,20-of 5.40. On the news the stock lost of 6.43%. The reaction of investors clearly indicates that they would be happy if the rate will not change for some time. However, the correction on the news about the imminent increase weaker. This suggests that the reaction to the increase rate will be negative, but the decline will not last long. We continue to believe that at the September meeting the fed will raise the rate. Today at 15:30 GMT will be published data on applications for unemployment benefits. Expect a small increase in their number that in the light of a question on rate will affect the market positively. At 17:00 MSK in the U.S. will know the value of the index. Waiting for the growth and preservation of a growing trend of the market against this background. The S&P500 index closed in positive territory, reaching 2190 points.



The fed is ready to raise 18.08.2016

Share with traders

Share to Google Plus
Share to LiveJournal
Share to MyWorld
Share to Odnoklassniki