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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 January 18th - January 22nd PDF Print E-mail

 

Market Outlook

- US : US indices consolidated last week after Alcoa's and JPMorgan's results failed to lift investor's spirit.
The Dow Jones managed to reached a new 52w high but closed lower WoW. Shares in the Materials (-3.24%), Semiconductors (-3.72%) and Telecom. Services (-3.97%) sectors fell most. Earnings reports will accelerate this week and should provide plenty of food for thought. Technically speaking, the outlook remains positive albeit a flat to moderate consolidation before a further up leg can be considered. US markets will be closed Monday for Martin Luther King Day.

- EUROPE : European markets consolidated inline with Wall Street. Shares in the Basic Resources (-2.66%), Chemicals (-2.81%) and Banks (-3.67%) sectors fell most. Stocks in the Health Care (+2.04%), Retail (+1.79%) and Personal & Household Goods (+1.06%) sectors posted WoW gains. From a technical point of view on the Stoxx 600, the bias remains positive above 249 but for this week, the index may have shaped a double top pattern around 261 which should lead to a moderate consolidation.

  January 18th - January 22nd

Market Round up

 

Weekly chg (%)

Last

Dow Jones

-.1

10609.7

Nasdaq 100

-1.5

1864.5

Dax Xetra

-2.7

5876

Cac 40

-2.2

3954.4

 Foreign Exchange

Euro/dollar : The pair has broken below its MT bullish channel lower boundary and is shaping a bearish flag. SHORT below 1.4850 towards 1.40 & 1.3750.

Dollar/yen : The pair has broken above its MT bearish channel upper boundary and should post a further up move. LONG @ 88 with 95 or even 97.50 in sight.

Company preview

IBM (USD 131.78 ; 0.71% ; IBM ; IBM.N)
Tuesday, IBM is expected to release 4Q EPS of appx. $3.5 compared to $3.28 a year earlier on sales of $27bln, unchanged YoY. Last week, Sony Corp decided to outsource a part of the human resources and accounting operation services in Japan to the Co's Japanese unit. Besides, IBM signed a 5yr business transformation agreement with UTV Software Communications in India. Technically, the stock remains well positively oriented above its ascending 50D MA ($128.5). The stock price should test its $133 resistance at first before a further up move towards $140 in the coming weeks.

ConocoPhillips (USD 53.02 ; -0.45% ; COP ; COP.N)
On Wednesday, ConocoPhillips, the US international, integrated energy giant, could report 4Q EPS of $1.2 compared with $1.29 a year ago. Recently, the Wall Street Journal said the Co and Abu Dhabi could face delays on a $12bln sour gas project in the sheikdom. From a technical point of view, the stock price continued to consolidate within its trading range between $50 and $54. As long as $51.6 holds on the downside, a test of the upper boundary of the trading range seems likely in the next weeks.

Bank of America (USD 16.26 ; -3.1% ; BAC ; BAC.N)
The same day, Bank of America may announce another 4Q LPS. Last Friday, the bank said net charge-offs in December rose to 13.53% YoY. A few days ago, BofA announced to cut the cash component of investment bankers' bonuses to about 15%. The Co's price target was raised to $21 ("outperform") from $17 ("neutral") at Credit Suisse. Graphically, the stock is consolidating above the $16 threshold. Since the short-term moving average have started to reverse up, a further rebound seems likely to $17.35 then $18.

Google (USD 580 ; -3.66% ; GOOG ; GOOG.O)
Thursday, Google is expected to deliver 4Q EPS of $6.43 compared with $4.41 a year earlier on sales of $4.9bln vs $5.7bln. Last week, the Co threatened to pull out of China following a cyber attack. Separately, the Co's Nexus One sales may have been 20,000 units in its first week of sales, according to BGR website. Technically, the shares retraced last week to the 50D MA. However, the bias remains bullish on the medium-term view as long as $570 holds with a possible retest of its last high at $629.

General Electric (USD 16.44 ; -0.96% ; GE ; GE.N)
On Friday, General Electric, the conglomerate, could unveil 4Q EPS of $0.26 vs $0.50 a year ago on sales of appx. $40bln vs $46.2bln. Earlier, the Co signed contracts to supply machines to HECIC New Energy for three projects in China. The Co's price target was increased to $22 from $20 at JPMorgan with an "overweight" rating unchanged. From a chartist view, the rising 20D and 50D moving averages as well as strong support at $15 should allow for further upside to $17.5 at first.

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


Corporate Calendar January 18th - January 22nd

Date

Market

Company

Event

Monday, January 18th

   

No major earnings expected

 

Tuesday, January 19th

 

UK

Chemring Group

annual results

 

US

IBM

4th-Quarter results

 

US

Fastenal

4th-Quarter results

 

US

Citigroup

4th-Quarter results

 

US

Charles Schwab

4th-Quarter results

 

US

First Horizon National

4th-Quarter results

Wednesday, January 20th

 

US

Xilinx

3rd-Quarter results

 

US

Morgan Stanley

4th-Quarter results

 

US

ConocoPhillips

4th-Quarter results

 

US

Ebay

4th-Quarter results

 

US

Bank of America

4th-Quarter results

 

US

Wells Fargo & Co

4th-Quarter results

Thursday, January 21st

 

US

Xerox

4th-Quarter results

 

US

Goldman Sachs

4th-Quarter results

 

US

Northrop Grumman

4th-Quarter results

 

US

American Express

4th-Quarter results

 

US

Google

4th-Quarter results

 

US

Advanced Micro Devices

4th-Quarter results

Friday, January 22nd

 

US

McDonald's

4th-Quarter results

 

US

Schlumberger

4th-Quarter results

 

US

General Electric

4th-Quarter results

 

US

Exelon Corp

4th-Quarter results

 

US

Johnson Controls

1st-Quarter results

 

US

BB&T Corp

4th-Quarter results


Economic Calendar (CET) January 18th - January 22nd

Date

Market

Economic data

Period

Expected

Last

Monday, January 18th

   

No major economic data expected

     

Tuesday, January 19th

19:00:00

US

NAHB Housing Market

JAN

17

16

Wednesday, January 20th

14:30:00

US

Producer Price Index (MoM)

DEC

0%

1.8%

14:30:00

US

PPI - Ex Food & Energy (MoM)

DEC

0.1%

0.5%

14:30:00

US

Housing Starts (Thsd)

DEC

574

574

14:30:00

US

Bulding Permits (Thsd)

DEC

582

589

Thursday, January 21st

14:30:00

US

Initial Jobless Claims (Thsd)

W2

NA

444

16:00:00

US

Philadelphia Fed.

JAN

17.62

22.5

16:00:00

US

Leading Indicators

DEC

0.7%

0.9%

17:00:00

US

Crude Oil Inventories (WoW chg)

W2

NA

3699

Friday, January 22nd

   

No major economic data expected

     

 

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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