During the second day of the week in the U.S. indexes fluctuated around the neutral level after volatile economic announcements withdrew positive corporate results. Before the start of the session the index of house prices S & P / Case-Shiller Composite 20 surged by 4.6 percent in May, which topped forecasts for an increase of 3.8 per cent. On the other hand, consumer confidence for July fell more than expected, reaching 50.4 points. Production Richmond Fed index also fell more than forecast, given the value of 16 points compared to 23 months in advance. Level of corporate shares of Lexmark International led the Bulls in the S & P 500 rose 8.47 percent to 37.76 dollars. The manufacturer of laser and inkjet printers reported second-quarter profit of 1.23 dollars per share, which surpassed analysts’ forecasts of 93 cents. DuPont led the Bulls among blue chips, as advanced by 3.57% to a level of 40.38 dollars per share. Third largest producer of chemicals in the U.S. also reported second-quarter profit above analysts’ forecasts and also increased its forecast for results at the end of the year.
(more…)

In the event that stress testing of banks in Europe were made based on examination of the entire portfolio of government bonds to banks, 24 financial institutions it would not be able to withstand successfully. Such is the opinion of analysts of U.S. bank Citigroup. Such a scenario would have shown that the financial institutions need to raise capital amounting to 15 billion euros to be stable at any shock to the system, reported Financial Times. The problem with stress testing, which was attended by 91 banks, is that called were tested. commercial paper, rather than purchased in order to hold to maturity government bonds. The difference between them is that first used for commerce in the short and medium term, while others show real risk that government securities carry. Analysts say the U.S. Spanish bank financial institutions had the greatest benefit from such testing in this way. The reason is that they have significant positions in the Portuguese and Spanish government bonds, many of which fall under the heading hold to maturity, the newspaper added.
(more…)

The U.S. Treasury announced that the state has collected 10.5 billion dollars by selling 2.6 billion shares of Citigroup. Shares were owned by the Government as part of a plan to rescue the financial sector worth $ 700 billion made in 2008. Ministry of Finance added that it is selling out of 1.1 billion shares and that it has completed the second phase of the plan to eradicate the government’s stake in the institution, writes AP. Shares were sold at an average price of around 4.03 dollars, which means that the country has achieved 24% yield compared to the cost of 3.25 dollars cash. U.S. still has 5.1 billion shares of Citigroup, which means that soon there may be selling more shares. During the financial crisis, the Bank received 45 billion dollars from the state which is the largest aid granted a U.S. bank. Of the total 25 billion dollars were converted into shares which were owned by the Government.
(more…)

Several bad news in the U.S. failed to have any influence on American indexes and after a strong start and retain profitable positions throughout the market session closed with solid increases. Growth rates have made shares of companies from all industries, was particularly good mood on the positions of groups in the health sector because of expected blocking controversial health care reform in the country. Shares of Pfizer jumped 2.62 percent, rose 1.27 percent to those of Johnson & Johnson, had a 2.89 percent growth in Merck. Although Citigroup announced a loss of up to 7,6 billion dollars last quarter of 2009, the financial sector also recorded a profit. Appreciated shares and the bank itself (3.51%) reported having a bad result does not surprise and did not derail investors. Increased to more shares of Bank of America (+0,25%) and American Express (+1,3%). Data from the National Association of Builders of homes have not stopped the momentum of the indexes. The association said the index of confidence in the construction sector has reached the lowest level since June last year as potential buyers have decreased during the first month of 2010. However, Dow Jones Industrial Average ended the session with a jump of 1.09 percent to 10 725 points. S & P 500 rose by 1.25 percent to 1150 points and the Nasdaq Composite to its value added 1.42 percent to 2320 points.
(more…)

The Sovereign wealth fund Kuwait announced that it has sold its stake in U.S. bank Citigroup. The price of the transaction is 4.1 billion dollars. This means that the fund has achieved a net profit of 1,1 billion dollars, or nearly 37 per cent for two years, submitted AR. Less than two years the State of Kuwait Investment Fund bought preferred shares of Citigroup for $ 3 billion. These shares have been converted into ordinary, after which they were sold. Currently no comment from both of Citigroup, and by the investment fund. Together with shares of Citigroup and acquired fund shares for $ 2 billion of capital from Merrill Lynch. However, because of problems the bank was acquired by Bank of America. Analysts said the fund soon as possible to sell those shares because their price was raised substantially in recent months. The deal to sell of Citigroup came as a surprise to the markets.
(more…)

In the next few days the U.S. Treasury will ask the companies that received large government loans to seriously reduce salaries of senior employees. According to a source of authoritative agency media agency reduction in basic pay for the most expensive employees, will be up to 90%, while compensation and bonuses will be cut in half. It is unclear exactly what will be the ceiling on wages and how they will be calculated. The reductions apply to 25 of the most high paid executive directors in seven large U.S. financial companies. In them are American International Group, Bank of America, Citigroup, General Motors, GMAC, Chrysler LLC and Chrysler Financial. Smaller companies and those who have already returned to government loans in the financial plan of George Bush (TARP) as Goldman Sachs and JPMorgan Chase, will not be affected by the measure. Among other things, any financial limit for the targeted companies will mean that executives will have to ask permission for any special privileges worth over 25 thousand dollars – a private plane at a club membership and service cars.
(more…)

Goldman Sachs is best managed company in the U.S. financial sector, says banking analyst at Rochdale Securities Richard Bouv. However, the most promising and undervalued share in the sector is that of Citigroup, is confident the specialist. According to him, Citigroup shares have the potential to reach a price of $ 20 per piece, which means that within 2-3 years it has risen to four. Yesterday the bank’s shares lost 5 percent of its value to 4.75 per dollar. The reason for this report gave the financial institution, which showed a profit of 101 million dollars. “It’s more than Goldman Sachs can bring to investors, although the company is much better,” said Bouv. Shares of Goldman Sachs fell by 1,9 per cent yesterday and closed trading session at 188.63 dollars cash. This happened despite the strong statements of the company and reported profit growth of 300 percent on an annual basis. Richard Bouv leveled criticism at those who launched sales of the shares of Goldman since the publication of quarterly results. They greatly exceeded forecasts of analysts, but many were left disappointed as expected surprisingly high performance.
(more…)

U.S. indexes are traded in the Range near at its highest levels for the year. Retention of the upturn came after depreciated on the basis of profits that disappointed investors. Citigroup was down by 5.4 percent to 4.73 dollars. Bank from which the U.S. government owns 34%, has 101 million profit for the third quarter. For its part, Goldman Sachs fell 2.39 percent to 187.65 dollars. The Bank reported a profit for the third quarter amounted to 3.19 billion dollars, thanks to better management of personal assets. However, the bank does not meet the expectations of analysts. JPMorgan lost 0.7 percent to 46.82 dollars, while Bank of America fell by 3.3 percent to 17.98 dollars. Capital One Financial Corp. also decreased by 4.7 percent to 37.5 dollars. Positive news from the labor market in the U.S. also could not help the market to continue its strong upward trend. Applications for unemployment benefits fell to 514 thousand in the last week at 524 thousand a week earlier. Long-term unemployed also fell to below 6 million USD. Energy companies were traded in positive territory, with Chevron Corp. rose 1.4 percent to 76.5 dollars, and Exxon Mobile added 1.32 percent to 72.79 dollars after oil futures rose above $ 78 a barrel. Ministry of Energy of the United States reported an unexpected drop in gasoline stocks due to closure of refining capacity for technical review.
(more…)

U.S. indexes rose on Thursday as energy shares rose, influenced by the price of oil, which climbed to their highest level of a year. This helped to give the movement indexes from the first hours after the opening of the session when the market was under the influence of the results of Citigroup and Goldman Sachs, which disappointed investors. The indexes went up to a new annual peak. The index of the 30 most liquid stock companies Dow Jones IA added to the 0.5 percent to 10,062.94 points, after the previous session passed the psychological limit of 10000 points. The wider S & P 500 climbed 0.4 percent to 1096.94 points and the index of companies in the Nasdaq stock exchange ended with a growth of 0.1 percent to 2173.29 points. Shares of Exxon Mobil and Chevron Corp. by adding 1.5% to its value after oil jumped more than 77 dollars a barrel. Citigroup dropped by 5 percent, while Goldman Sachs fell by 1.9 percent. Weakness in financial shares dominated the beginning of the session when the Dow Jones IA down again than 10000 points. The data published by the Ministry of Energy of the United States, which showed that reserves of gasoline fell unexpectedly, caused sharp increases in oil prices, which sparked and interest in the oil companies and turn the market.
(more…)