Stock market. Weekly review. [E]

Wall Street closed the week with significant losses: “blue chips" fell

for 5 days. Major reason of U.S. stocks sales was riseng of

geopolitical situation. Also the pressure came on oil rise and unsuccessful start of quarter

reporting. S&P 500 dropped 2.6%, while for technological Nasdaq last week was

the worst since April 2005 (-4.5%). Dow declined 1%, and came to start

positions of 2006.

Alcoa stocks fell 9.4% despite company declared record growth of profit

in Q2. Investors focused on earnings, which appeared below forecasts.

Microsoft shares dropped 3.6% after EU present a fine $280 bln. for

infringement of antimonopoly law. It led to sales of other technological

companies' shares, including Hewlett Packard (-5.4%).

Large companies like General Motors also was in focus. Stocks of auto

giant General Motors fell at 7%, because CEO Rick Wagoner said he is ready to sign

arrangement on alliance with Renault and Nissan. However CEO of these companies Carlos Ghosn refused

to take the same position in

GM.

EMC warned financial results of Q2 will appear below forecasts. As a

result company's shares dropped 14.2%. Competitor Network Appliance

shares fell (-19.5%). S&P Computer Storage and Peripherals Index dropped

13.1%, it was the worst week for index since October 2003.

However in technological sector was a good news too. Electronic Arts

gained 7.7%.

Oil established a new historical high and supported energy sector.

ExxonMobil increased 2.4%, as company was a leader among Dow composites.

Schlumberger rose 4.7% after Morgan Stanley upgraded price target for

company's stocks.