The Fed worries Wall Street
Posted by admin on July 22nd, 2010The green will not stay very long on Wall Street Wednesday. After starting up in, carried by companies satisfactory results, the markets fall into the red of -0.57% to 10,172 points for the Dow Jones -1.12% to 2198 points and the Nasdaq – 0.80% in 1075 for the S & P.
A reversal following direct speech, much anticipated, Ben Bernanke. The Fed chairman, who delivered his verdict on the U.S. economy before the Senate Banking Committee, said that the takeover of the U.S. economy "continues at a slow pace" and that "the economic outlook remain unusually uncertain" . If no measure of support is mentioned, the Fed is willing to act.
"The market reaction reflects the caution shown by the markets," notes Nick Kalivas, an analyst at MF Global in Chicago."Yet, to some degree, support annocée the Fed would have meant that things were worse than we thought."
These ads are disturbing in any case overshadowed the results published before market trimestreils …
Record earnings for Wells Fargo
Wells Fargo (4.32% to 27.03 dollars) on Wednesday posted a net profit of the group "record" for the second quarter to 2.787 billion dollars, up 12% over a year and above expectations, and reported an improvement in the credit greater than planned. Based on the number of shares, the benefit amounts to 55 cents, while analysts were only expecting 48.Net revenue (turnover) of the fourth largest U.S. bank stood at 21.394 billion dollars, yielding 5% a year.
The U.S. investment bank Morgan Stanley (8.05% to $ 24.25) Wednesday announced a net profit group share of $ 1.578 billion in the second quarter, much better than expected, with a turnover also exceeding analysts' forecasts. Per share, net income totaled $ 1.09 and 80 cents without considering the integration of brokerage Smith Barney Citi bought instant credit report.Analysts had expected 46 cents per share excluding special items.
The U.S. giant soft drink Coca-Cola (+2.05% to 54.32 dollars) net earnings up over 16% to $ 2.37 billion in the second quarter, slightly less than expected thanks to higher sales volumes internationally. Reported per share, current earnings is $ 1.02, slightly less than the $ 1.03 expected by analysts, but better than the 92 cents recorded a year earlier.
Apple has released its quarterly after the close of Wall Street. The firm at the apple once again exceeded market expectations in the third quarter of fiscal offset with net income up 78% year on year to 3.253 billion dollars, and sales far beyond forecasts.The securities earn 3.81% to 261.48 dollars.
The U.S. Internet portal Yahoo! posted a group net profit up 51% year on year to 213.32 million dollars in the second quarter, better than expected by analysts, but its sales came out virtually unchanged. The shares dive: -8.88% to 13.85 dollars.
Moreover, the oil giant BP traded on Wall Street Tuesday concluded an agreement with U.S. rival Apache to sell him to seven billion dollars in assets, making a sudden the majority of assignments to which he had hired to offset the cost of the spill. The news was welcomed: securities rise of 3.35% to 36.38 dollars.
Note that the foreign exchange market, the euro retreated against the dollar, traders were playing the card of caution before the release Friday of the results of resistance testing of the 91 largest European banks. In the morning, the euro was at 1.2867 dollars against 1.2881 dollars the previous day.
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