Category Archives: USA Finances

Growth in MasterCard payments

MastercardThe second largest company in the world for card payments MasterCard reported higher than expected earnings in the second quarter, thanks to growth in the volume of payments. The net income increased by 10% to 931 million USD (80 cents per share) between April and June, compared to 848 million USD (70 cents per share) a year earlier. The net income grew by 13.4% to 2.38 billion USD.
The average estimate of analysts was for earnings per share of 77 cents and revenue of 2.31 ​​billion USD. The volume of payments made ​​with cards MasterCard, swelled by 12.5% to 821 billion dollars, calculated in local currency due to gains in Europe, Asia-Pacific, Middle East and Africa. The volume of payments in the United States increased by 10.1% to 289 billion USD.
The price of the shares of MasterCard rose by 2.3% since published financial results in May, trailing the index S&P 500, which added 4.6% to its value over the same period.

Wall Street indexes slightly increased

Wall StreetWall Street indexes finished the session without single direction, as Dow Jones rose with 0.13% to 16,983 points, S&P 500 added 0.03% to 1, 979 points and Nasdaq lost 0.1% to 4,445 points.
The strong growth in today’s session marked the shares of utilities – an average of 1.46%. Follow telecoms with an increase of 0.46%. At the other extreme are companies from the construction sector, as a sector sub-index fell 0.5%. The gold futures for delivery in August remained unchanged in today’s session on the stock exchange in New York amid geopolitical risks. The price per ounce was 1,303.3 USD.
The experts explained that the price changes are minimal because of pent-up demand in China and India – the leading markets of the precious metal in the world.

Bubbles are a function of human nature according to Greenspan

Alan GreenspanThe former Chairman of the US Federal Reserve (Fed) Chairman Alan Greenspan has always been a student of economics. After the financial crisis, he became a student of human nature. Sitting in his office overlooking the Washington Monument, Greenspan is eager to share his insight that in his latest book “The Map and the Territory”, to be printed in the fall.
The 88-year-old Greenspan was Fed chairman for more than 18 years in the period 1987 to 2006, he managed to bring the economy in many crises primarily through lower interest rates and optimism.
But after leaving office, he has experienced a remarkable fall. He apologized for having believed too many of the big banks again reconsider his views on the economy. Greenspan is currently president of the consulting firm Greenspan Associates LLC.
“The economy will do everything necessary in the short term, supported by a strong rise in the stock market”, he says, but remains worried that “we may be facing a new downturn”. According to him, the biggest challenge facing the Fed is how the central bank to cut its huge balance sheet with minimal consequences. “It will not be easy, and obviously it is not clear how it will happen”, said Greenspan, hoping that the Fed will stop smoothly the current monetary course.

Hesitant start to Wall Street after a series of losses

Wall Street indexesThe leading indexes on Wall Street started the trading session on Friday tentatively. The investors are still wary about the intentions of the U.S. Federal Reserve to reduce monetary stimulus.
Dow Jones Industrial Average rose 0.10% to 15754.42. The broader index S & P 500 was almost unchanged as inferior minimum of 0.01% to 1775.35. Telecommunications and energy companies represent the worst so far, while consumer goods companies – best among the 10 sector indexes. The technological Nasdaq Composite rose 0.11% to 4002.92 points. Producer prices in USA declined for the third consecutive month in November, despite signs of possible stabilization annually. To the Ministry of Labor of the United States showed that the index of producer prices has declined by 0.1% last month after falling 0.2% in October and that of 0.1% in September. Last Meter fell in three consecutive months at the end of 2012. The analysts believe that low inflation will force the Fed to keep the size of their incentives. Federal open market committee (FOMC) to the central bank will meet on 17-18 December to determine the future of monetary policy.

Market expects 8% growth of S&P 500 in 2014

Indexes USANearing the end of 2013 – the year which was really impressive to investors. So far, stock indexes, especially those in more developed markets, offers more than well. Remains few weeks, but now the situation looks like this: Topix is up by 44%, S&P 500 increased by about 25%, while European shares measured by the Stoxx 600 rose 11%. In more general terms, MSCI World Index rose by 19%.
The year 2013 is the best of the last 15 years for US equity markets, with the greatest force this applies to S&P 500. The main question is – what can we expect next year?
Among the 20 surveyed leading experts most optimistic set of these Morgan Stanley. According to them, S&P 500 will go above the level of 2000 points in the next calendar year. In fact, they expect that in 2014 it will reach exactly 2014 points, an increase of 13%. The most conservative estimate does comes from Stifel Nicolaus, who expect a decrease. Currently, the index is at around 1775 points, and the company predicts that next year it will fall further to a level of 1750 points.

China became leader in oil imports from OPEC

OPECChina will displace the United States from the top position in terms of actual oil imports from member countries of the Organization of Petroleum Exporting Countries (OPEC).
“A few years ago China surpassed the U.S. in terms of purchases of crude oil from the Persian Gulf. In 2013, the Asian country will become a leader in the supply of crude oil from OPEC countries”, it said in an analysis of The Wall Street Journal Europe. According to the organization during the first half of China’s imports from OPEC has reached 3.7 million barrels, while USA – 3.5 million barrels. As a result, this year for the first time in history, Beijing will overtake Washington on purchases of crude oil from OPEC. The third position goes hand in India by 3.4 million barrels.
“The transformation of China into a major importer of oil from the Middle East will increase diplomatic tensions between USA and China in this key region of the world”, the more analysts from The Wall Street Journal Europe.

Wall Street praised the withdrawal of Larry Summers

Larry SummersThe session on Wall Street ended with the rise of Dow Jones and S & P 500, after the person nominated by the US President Barack Obama’s successor to Federal Reserve Chairman Ben Bernanke – Lawrence Summers himself withdrew from the race for the post. The “Blue chips” added 0.77 percent to 15,495 points, led by shares of Boeing and General Electric, but the shares of Hewlett-Packard, Microsoft and Intel put the brakes on the meter. The index of 500 large companies did increase by 0.59% to 1,698 points. Only the Nasdaq ended the session with a fall of 0.11% to 3718 points. The index heavy stocks of Apple, which fell 3% after a report was published that the Chinese carrier gives a lower subsidy for new iPhone. Among the gainers were shares of Facebook, after Goldman Sachs raised its assessment of the price of the lot. Just this month, the company’s market value has increased by 8 percent. The market participants rely on Janet Yellen as a possible successor to Bernanke. They see it as closer policy that leads the current Fed chairman, and expect that it will withdraw liquidity from the economy rapidly.
“I do not think the markets were aware of exactly what the Fed chairman would be Summers, so after dropping out of the race things look more confident and relaxed”, said Colleen told Bloomberg accompanied, director of Osborn&Scarborough in San Francisco. “It seems that a possible reduction program for the purchase of bonds is now accepted by the market, so expect modest movements”, she predicted.

Impending conflict in Syria deepened the decline of US stock markets

US InvestorsThe major US indexes posted sharp declines for the second straight session, while Dow Jones fell to a two-month low amid rising concerns about possible US military action against Syria. The US Secretary of Defense Chuck Hagel told the BBC, that the US military is “ready to move” if the US President Barack Obama ordered the action in response to attacks with chemical weapons in Syria. Meanwhile, NBC News reported that the United States could take a rocket attack on Syria “to Thursday”. Dow Jones declined by 1.14% to 14 776.13 points, led by Bank of America, whose shares lost 2.6% of its value to 14.11 dollars per share, and Microsoft, whose market capitalization has shrunk by 2.6% to 33.26 USD.
Standard & Poor’s 500 lost 1.59% to 1 630.48 points, with all its key subsectors ended in negative territory, led by technology and financial companies. Nasdaq Composite slid 2.16 percent to 3 578.52 points and a Standard & Poor’s recorded its weakest session than 2 months. Art Cachin, director of operations of a regulated market in UBS Financial Services, said he is worried about the situation in Syria, describing it as “another big variable”. “I know people who reject this as an excuse for the market that is heading down, but I think if you look at things like the spread between Brent and varieties of West Texas, which begins to expand, you will find that there is a real concern”, he added.

Financial reports supported the stock trading in USA

US InvestorsBetter-than-expected financial results erased negative sentiment that ruled in the last days the stock markets overseas. So investors forgot his fears of the publication of the transcript of the last meeting of the Federal Reserve. The document will be publicly available tomorrow.
“We have some very good financial performance of retailers. They simply show that consumers are not dead and things are moving in the right direction”, said a senior trader at NorthCoast Asset Management Frank Ingara quoted by Bloomberg.
The S&P 500 overcame four consecutive sessions of decline in value. The index ended trading with an increase of 0.4% to a value of 1 665.42 points. Negative sentiment wiped and Nasdaq. The value of the index reached 3 613.59 points at the end of the day. This represents an increase of 0.7 per cent compared to the closing level on Monday. Albeit with minimal change of 0,05% Dow Jones closed red territory. The index closed the session at 15 002.99 points.
The shares of Best Buy jumped over 10% after the company reported sales that exceed expectations. The profit for the second quarter of the largest retailer of consumer electronics has reached 266 million USD, compared to 12 million USD an year earlier. Company’s securities are traded at a price of just over 34 USD per share.
Among the best performing companies of the S&P 500 today is another company retail – Urban Outfitters. The company added about 10% to its market capitalization and ended the day with a price of about 44 USD per share.

S&P 500 held above 1700 points

USA Wall StreetThe index S&P 500 managed to hold at a record high of over 1,700 points after came a series of positive data for the manufacturing sector in China and the Eurozone, leading central banks have pledged to maintain stimulus for the economy. At the end of the session on Wall Street Dow Jones rose by 0.83% to 15,628 points, S & P 500 added 1.26 percent to 1,707 points, while the Nasdaq rose 1.37% to 3676 points. All 10 industry groups in the composition of the S & P 500 ended the session with gains. The shares of Procter & Gamble Co. rose after the company’s financial results exceeded expectations.
Market valuation of DreamWorks added over 8 percent also infect better financial results, while that of Exxon Mobil Corp. fell after the company’s profit did not meet analysts’ expectations. With an impressive 26% gainers on Yelp, after the company announced that sales in the second quarter jumped 69% to 55 million USD in estimated 53.3 million USD. The European and British central banks kept the level of key interest rates. Later, ECB President Mario Draghi confirmed that the bank will keep the monetary policy “for an extended period of time” as the economy strengthened. Yesterday, the Fed also committed to continue with economic incentives, while not noticing sustainable recovery and visible improvement in the labor market. According to the US Central Bank is at risk too low inflation hinder recovery