The U.S. stock market begins this week on a hesitant note. After remaining at equilibrium throughout the morning, the indices have slowly gone back up to the mid-day. At approximately 19:30 on Monday, the Dow Jones gained 0.46% at 12,696 points, the Nasdaq advance of 0.63% to 2845 points while the S & P 500 is 0.50% to 1347 points.
On the macroeconomic front, there was no major indicator on the agenda of U.S. investors on Monday. The latter, like their European counterparts, remained so focused on the issue of sovereign debt in Europe and on commodity prices.
Greece under surveillance
The euro zone fails indeed not to emerge from the crisis of sovereign debt: the plan ready for Portugal just completed, it must again stand at the head of Greece.At a meeting held behind closed doors Friday evening in Luxembourg by the main actors in the monetary union, the issue of additional budgetary efforts to achieve the country to reduce its deficits has been addressed, as well as the means of help longer than expected. The leader of the finance ministers of the monetary union, Jean-Claude Juncker, has deemed necessary a new program to address the Greek government accounts. However, the rumor of an exit from the euro zone countries were formally denied by the Athens government and European bodies.
On Monday, rating agency Standard & Poor's has reinforced the general fears by deciding to lower the two-notch credit ratings of Greece in the short and long term, suggesting an increased risk that Athens must resolve to restructure its debt. Fitch and Moody's should do the same.
On the foreign exchange market, the euro decreased again at 1.4311 dollars, against 1.4335 dollars on Friday night.
Commodities rebound
Rising dollar is not expected to promote the progress of black gold. However, they try to regain some ground on Monday on the New York Mercantile Exchange (Nymex). The barrel of light sweet crude (WTI) crude for June delivery gained 3.61 dollars to 100.79 dollars while at the same time, a barrel of Brent North Sea crude for June delivery was trading at 113 , $ 37 at the InterContinental Exchange (ICE) in London, up $ 4.24 from Friday's close.
The values of energy and industry, battered last week, thus helping to increase indices, like two heavyweights Caterpillar rating (+1.41% to 111.90 dollars) and Chevron (0.99% to 103.90 dollars).
The battered banking
Good news on the front companies also helped investors overcome their fears. McDonald's (1.19% to 79.64 dollars) has reported solid growth in sales in April than 6%.
Berkshire Hathaway (+0.21% to 120.52 dollars), the holding company of billionaire Warren Buffett, announced after the close on Wall Street Friday it recorded first quarter 2011 net earnings of $ 1.51 billion as against 3 6 billion last year.
For its part, International Coal Group (+0.07% to 14.46 dollars) has reported a deficit in the first quarter of $ 6.3 million against a net profit of 22 million announced on April 27, following his conviction to pay 104 million dollars in damage to one of its customers on May 2.
The quarterly earnings season coming to an end and this week will be less abundant in business publications. The main companies unveiling their results will be Walt Disney (tomorrow), Cisco, Macy's, Symantec (Wednesday), Nordstrom, Nvidia (Thursday). Since the beginning of the season publications, are estimates of the results have been revised upwards. Average profits of listed companies on the S & P 500 would have increased 18% in the first quarter from the previous year, against an initial estimate of 13% in early April, according to Reuters data.And so far, 69% of groups who published their results beat the consensus.
Hertz (+0.33% to $ 16.90), announced Monday a new offer at $ 72 per share to buy its competitor Dollar Thrifty (12.94% to 78.71 dollars), whose shareholders had already rejected an offer in September. It is 24% more than its competitor's offer notice (-0.33% to 18.35 dollars), which has still not received the green light from regulators.
In its latest study, the institute Millward Brown consultancy makes Apple (+0.49% to 348.37 dollars) "the most valued global brand" in the world, across all sectors. The firm supersedes its competitors, but also, for the first time, figures like McDonald's or Coca-Cola. The Apple brand, famous for its iPod and iPad, saw off his recovery from 84% in one year to reach 153.28 billion dollars.Since 2006, the Apple brand value has increased from 859%.
However the banks were in trouble, like their European counterparts, such as Bank of America (-1.15% to 12.17 dollars) or JPMorgan Chase (-1.11% to 44.54 dollars).