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Finance Report & Market Outlook | International Stock Market Review

Every week we round up what has happened in world economies across the globe. Looking at indicies, equity markets, and forex. We also preview five companies that may affect the stock price of International Large Caps.

in association withInternaxx logo

Market Outlook February 16th - February 20th PDF Print E-mail

Go to : Company preview, Economic Calendar, Corporate Calendar
February 16th - February 20th

- US : Initial enthusiasm over the prospect of relief on the housing front turned short-lived after the White House cautioned against unreasonable expectations. The markets earlier slide was spurred by a jump in jobless claims to a record. The Dow had its lowest close on Friday since the bear market closing low of November 20th, capping a week when financial stocks were pummeled as the government's latest bank rescue plan failed to allay investor worries. All sectors closed the week down, led by Banks, Diversified Financials and Real Estate. On a technical point of view, US indices are still badly oriented and evolve below their 20D & 50D moving averages. Hence, the downside risk prevails.

- EUROPE : European equities traded down on fears over the banking sector, poor macro data from Japan and after the lack of coordinated action from the G7 meeting. All sectors lost ground wow, espacially stocks from Utilities, Basic Ressources and Insurance. HealthCare shares were broadly flat. Technically, most European indices have just escaped from their ST rising wedge. The bearish exit of those continuation patterns calls for a resumption of the MT downtrend.

 Weekly chg (%)Last
Dow Jones-5.2      7850.4
Nasdaq 100-3.2      1236.9
Dax Xetra-5.4      4413.4
Cac 40-4.8      2983.9
Euro/dollar : The RSI is turning up, the pair should post a rebound but should be capped by its next resistance on the upside. continuation of the correction towards 1.2400 & 1.1950.

Dollar/yen : The pair is pulling back on its support before a new up move, the RSI is mixed to bullish. LONG @ 87.50 with 95 & even 98.80 in sight.

L'Oral (EUR 53.4 ; -4.22% ; OR ; OREP.PA)

L'Oreal is expected to report after the market close adjusted profit of appx. E2.1bln on sales of E17.6bln. Operating profit is seen at E2.7bln, down YoY, hurt by the consolidation of YSL Beaute, increased investments and currency rates. 4Q organic growth sales is expected to be slower in all regions. Market will focus on guidance concerning sales and margins for 2009. Technically, the price remains under pressure below E57.20 with another test of the E50 support area in sight.

Daimler (EUR 24.135 ; -6.25% ; DAI ; DAIGn.DE)

On Tuesday, Daimler may report a 4Q loss. In January, Fitch Ratings cut the carmaker's debt rating. According to the notation agency, Daimler's earnings and cash flow should be weaker than predicted by the company for this year and the next one. European car sales dropped 27% in January, a 20-year low. The stock has been trading in a E28-E20 trading range for several months. In the short-term, the stock is expected to test its the upper end of the range ahead of another leg down towards 20.

Wal-Mart (USD 46.53 ; -6.25% ; WMT ; WMT.N)

The same day, Wal-Mart may post 4Q/Jan EPS of $0.77 vs $1.04 a year earlier. Last week the Commerce Department reported that US retail sales unexpectedly rose 1% in January, reversing a six month decline. That was the biggest increase in 14 months. The figures were better than the 0.8% decline targeted by economists. In other news, Wal-Mart announced on Feb.10 that it would cut 700-800 jobs in home office. From a technical point of view, the downside breakout of the $50 former support area calls for further weakness with $44.50 as next down target.

Nestle (CHF 37.48 ; -2.14% ; NESN ; NESN.VX)

On Thursday, Nestle is expected to report FY net income of SF11bln (excluding an exceptional gain linked to its disposal of a 25% stake in Alcon to Novartis), on sales of SF111bln. Nestle has an option to sell its remaining 52% stake between January 2010 and July 2011 to the Swiss drugmaker. From a technical point of view, the downside breakout of the SF39.5 former support area triggered a bearish acceleration with 35 in sight.

Sprint Nextel (USD 2.82 ; 14.17% ; S ; S.N)

The sale day, Sprint Nextel may release a 4Q LPS of $0.04 vs EPS of $0.21 a year earlier on sales of $8.54bln vs $9.85 a year ago. The company announced in January it will take actions in the first quarter to reduce internal and external labor costs by appx. $1.2bln on an annualized basis. The actions include the elimination of appx. 8,000 positions within the company, which is expected to be largely completed by March 31. Sprint expects to recognize a charge in excess of $300m in the 1Q 09 related to this measure. Technically, the stock jumped 12% Friday in above average volume. Expect a test of the strong $3 resistance and possibly $3.5 on a breakout. Alternatively, the penetration of $2.4 would call for $2.00.

Selection of those events which may affect the stock prices of international Large Caps

CORPORATE CALENDAR February 16th - February 20th
Monday, February 16th
 BECofinimmoannual results
 FRL'Oralannual results
 FRAir Liquideannual results
 NETNTannual results
 SWSecuritas (B)annual results
Tuesday, February 17th
 USWal-Mart4th-Quarter results
 USMedtronic3rd-Quarter results
 USChesapeake Energy4th-Quarter results
 USAgilent Technologies1st-Quarter results
 USGenuine Parts4th-Quarter results
 USHospira4th-Quarter results
Wednesday, February 18th
 SWSwedish Matchannual results
 SWLundin Petroleum ABannual results
 USHewlett Packard1st-Quarter results
 USFirstenergy4th-Quarter results
 USDeere and Co1st-Quarter results
 USAmeren Corporation4th-Quarter results
Thursday, February 19th
 SZNestleannual results
 FRAxaannual results
 FRBNP Paribasannual results
 FRSchneider Electricannual results
 NOOrklaannual results
 USApache4th-Quarter results
Friday, February 20th
 SWHusqvarnaannual results
 USLowe's Companies4th-Quarter results
 USJC Penney4th-Quarter results
 USPinnacle West Capital4th-Quarter results
 FRLafargeannual results
 BEBelgacomannual results

ECONOMIC CALENDAR (CET) February 16th - February 20th
DateMarketEconomic dataPeriodExpectedLast
Tuesday, February 17th
10:30:00UKCPI - EU Harmonised (MoM)JAN-1%-0.4%
11:00:00ECEuro-Zone: Trade Balance (Bln)DEC -6959.5
11:00:00GEZew Survey (Econ. Sentiment)FEV-24.1-31
11:00:00GEZew Survey (Current Situation)FEV-82.3-77.1
14:30:00USEmpire ManufacturingFEV-24.65-22.2
19:00:00USNAHB Housing MarketFEV88
Wednesday, February 18th
14:30:00USHousing Starts (Thsd)JAN528550
14:30:00USBulding Permits (Thsd)JAN521547
15:15:00USIndustrial Production (MoM)JAN-1.4%-2%
15:15:00USIndustrial Capacity UtilizationJAN72.3%73.6%
Thursday, February 19th
14:30:00USInitial Jobless Claims (Thsd)W6 623
14:30:00USProducer Price Index (MoM)JAN0.3%-1.9%
14:30:00USPPI - Ex Food & Energy (MoM)JAN0.1%0.2%
16:00:00USPhiladelphia Fed.FEV-25.64-24.3
16:00:00USLeading IndicatorsJAN0.1%0.3%
17:00:00USCrude Oil Inventories (WoW chg)W7 4717
Friday, February 20th
08:45:00FRConsumer Price Index (MoM)JAN -0.2%
08:45:00FRCPI - EU Harmonised (MoM)JAN-0.4%-0.3%
08:50:00FRBusiness Confidence IndicatorFEV7373
08:50:00FRProduction Outlook IndicatorFEV-72-75
10:30:00UKRetail Sales (MoM)JAN-0.1%1.6%
14:30:00USConsumer Price Index (MoM)JAN0.2%-0.7%

This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice. Internaxx accepts no responsibility for the content of this newsletter. Investors are not authorized to copy, reproduce, duplicate, sell, resell or exploit any portion of the Newsletter for their own commercial purposes. In that case, Internaxx will immediately end the subscription.

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