The fall of the consumer Index and the bad forecasts on Baidu, the Chinese Google, marked the session in Wall Street, but the Dow Jones could even keep the green on october 27^th . Also the rise of the dollar and the Oil have been protagonists of Wall Street on October 27^th (the Oil had correction on October 28^th).

The Dow Jones of industry was the only able to end the day in green with rises of 0,14% to 9882 points. The Standard and Poor’s 500 lost a 0.33% to 1063 points. While the technological Nasdaq Composite took the worst part falling by 1,2% to 2116 points.

Two factors played a important role today against Wall Street and The Dow Jones , the technological companies and the fall of the consumer index in October. In the fist case, the American companies of the Nasdaq paid for the giant Baidu, that has very bad forecasts for the upcoming months and Wall Street penalized this.

Known as the ”Chinese Google’, this company announced today a growth of 42% in net profits and a 39% in sales. However, in the last quarter of the year, this company expects to have a profit between 174and 180 millions, very lower than the 205 expected by the analysts, and the fear in Wall Street plummeted the shares by 11,4%.

Except for some exceptions, like Texas Instrument, or IBM, that rose by 0,42 and 0,45 respectively, the majority of the companies integrating the Nasdaq Composite,ended in loses. So AMD fell by 5,35%, Nvidia Corp by 3,4%, Apple by 2,52%, Intel by 0,45%, and Google by 1,07%.

Other industry that made it difficult for Wall Street was the banking, The investors did not like the Bank of America’s amplification of capital by $45Bn , to return the funds of the financial rescue (TARP). Wall street reacted with a fall by 0,3% in the shares. This also transmitted to the other banks.

On the other side,In Wall Street, the oil companies have been benefited by the rise of the West Texas, the reference of the United States rose to $ 79,33.

Related posts:

1. Profits in Wall Street While the Dow Jones is Still under 10,000 points
2. Fear of a new meltdown is flying around in Wall Street
3. Wall Street affected by the High Unemployment rate

This week in wall Street, the Dow Jones has been affected by the results of Bank of America and General Electric,that haven’t been as convincing as the investors of Wall Street hoped, they bit to collect profits this Friday, furthermore, the data on the consumer’s trust, has been too weak again. However, this has been the week of the banks and the Dow Jones ended rising by 1%.

So, at the end of Friday, The Dow Jones of Industry fell by 0.8% to 9990 points, the S&P500 fell by 0.81% to 1087 points, and the technological Nasdaq fell by 0.76% to 2157 points.

In the weekly balance of Wall Street, after passing the though quest of the banking system results flock from the last 5 days we had green results and profits. The Dow Jones rose this week by 1,35, the S&P500 rose by 1′5% and also the Nasdaq rose, by 0′8%.

After the frenetic optimism in Wall Street delivered by the profits of JPMorgan this Wednesday, and after the rally of Thursday, the investors opted to take a break and collect profits, leaving the Dow Jones under 10000 points.

Today, the reason to collect profits has been given by 2 of the 3 main blue chips of Wall Street. Bank of America, the biggest bank of Wall Street, recorded loses by $1bn in the third quarter, these results suppose a loss of $0.26 per share, more than the $0.24 expected by the analysts assessed Bloomberg. Furthermore the entity added $11,7bn in provisions.

The growth of defaulting motivated this Cash flow to their provisions because the defaulting tax continues growing. The shares of Bank of America fell by 4% and they are transmitting to all the industry, JPMorgan fell by 1,5%, Citigroup lost a 3% and Goldman Sachs fell by 2%.

On the other hand, one of the thermometers of Wall Street and the Dow Jones, General Electric had its profits ripped by 44% in the last quarter, most of this loss was due to its financial filial GE capital, that plumbed profits by 87%. The shares of GE have been the heaviest on the Dow Jones this Friday, and when Wall street closed, they had been fallen by 3%.

In the technological of Wall Street, two important companies have also released their balances to Wall Street and the market, AMD and IBM. The first one, also member of the Dow Jones, lost a 5% but these results were the expected by Wall Street. IBM had a 13% more of profits although its revenue fell by 7%

Google also released profits to be followed in Wall Street, with a 21% of profits, supposing $5,89 per share, more than the expected $5,49, the shares of Google rose by 3%.

Related posts:

1. Wall Street is returning to the past, the technology falls and the oil rises.
2. Fear of a new meltdown is flying around in Wall Street
3. The Dow Jones reaches a new maximum of 9800 points

Although the fear of  a correction on thursday; this Week, the Dow Jones rallied again and rose up to 9800 points. This is a new maximum. The new Bullish rally in the stock market of New York, was feed by the good perspectives of the economy and the speeches of some celebrities like Ben Bernanke, pointing that the recession is over,have boosted the market.

The speech of Bernanke was reinforced thursday with new macroeconomic data:
-Initiation of new housing: In August, the US recovered it’s levels of November with the initiation of 598000 houses, a 1,5% more than in a year before, according data from the Commerce Department
The sum is OK with the analyst’s forecasts, but further than this the market valued that this data means the return to the levels of November 08.

-Industrial activity:Also has been good the data of industrial activity in the mid-Atlantic region valued by the Fed of Philadelphia. In September rose up to 14,1 points while the forecast was 8. In August the data was 4,2 points.This is the second consecutive month with positive values after 10 months in negative.

-Unemployment demands:In the week ended on 4th September decreased by 12000 demands to 545000,which are  better results than the forecast of 555.000.

However,there is prospect of a speculative Bubble, the low interest rates and the liquidity injections are feeding the market.In the US, the S&P 500 has risen nearly 60 per cent above its March low and the power of the rally has propelled the benchmark to its highest level above its 200-day moving average since May 1983.

“Not even during the great bull run of the 1990s did the S&P get this far above its 200-day,” says Justin Walters, co-founder of Bespoke Investment Group.

The Achilles heel of such growth is the consumption. If banks and other money lenders do not finance the consumer and business activity, the economy is in a serious danger.

Related posts:

1. Profits in Wall Street While the Dow Jones is Still under 10,000 points
2. Wall Street affected by the High Unemployment rate
3. Ben Bernanke is man of the Year by the Times Magazine