Market Outlook 9th August - 13th August Print

 

 

  August 9th - August 13th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

1.8

10653.6

Nasdaq 100

2.1

1902.9

Dax Xetra

1.8

6259.6

Cac 40

2

3716.1

Foreign Exchange

Euro/dollar : the pair has broken above a key declining trend line and should post a further up move. LONG above 1.2450 towards 1.3510 & 1.3815.

Dollar/yen : the pair stands within a ST bearish channel and is challenging its support as the RSI is badly directed. SHORT @ 88.8 with 85 or even 83 in sight.

Company preview

GDF Suez (EUR 26.19 ; 2.75% ; GSZ ; GSZ.PA)
On Tuesday, GDF Suez is expected to announce 1H net income of around E3bln compared to E3.26bln a year earlier. Recently, the Co was close to agreeing a takeover deal of International Power and GDF could also offer a special dividend of £1.3bln to sweeten the agreement. Technically, the stock penetrated on the upside from a declining trend line and is also supported by its 20D & 50D MAs. A further bounce is therefore expected to E28 and E29.15 in extension.

TUI Travel (GBp 216.4 ; 2.9% ; TT/ ; TT.L)
The same day in the UK, TUI Travel, an international leisure travel group, could release 3Q pre-tax profit of £111m compared to £44.3m a year ago on revenues of £3.5bln vs £3.57bln. The Co was downgraded to "neutral" from "overweight" at JPMorgan. From a technical point of view, the price is still under pressure below a major resistance at 220.5p and the technical indicators remain negatively oriented. In which case, a further pullback is more likely to occur towards 200p in the forthcoming days.

Nestle (CHF 50.55 ; -1.84% ; NESN ; NESN.VX)
On Wednesday, Nestle, the Swiss food giant, may unveil 1H net income of SF5.2bln compared with SF5.1bln last year on sales of SF51.7bln vs appx. SF52.3bln. Earlier, the Co completed the purchase of Vitaflo of Liverpool, a clinical nutrition products maker for an undisclosed sum. Besides, Nestle also planned to invest appx. $138m in East, Central and Southern Africa over the next 3yrs. Graphically, the price is moving within a MT trading range between SF54.5 and SF50 since early March 2010 and is now testing the lower boundary. The risk is a slide below SF50, which should open the way to SF48.5 at first.

Cisco Systems (USD 24.07 ; 4.33% ; CSCO ; CSCO.O)
On the same day in the US, Cisco Systems is expected to report 4Q EPS of $0.4 compared to $0.25 a year earlier on sales of $10.8bln vs $8.5bln. Last week, the Co entered an agreement with Multiven Inc to settle an antitrust lawsuit. Technically, the stock price might be forming an inverted "H&S" pattern and the clear breakout of the $24 threshold should trigger a bullish acceleration towards $26.

Prudential (GBp 571.5 ; 3.07% ; PRU ; PRU.L)
Thursday, Prudential Plc may publish, before market opens, 1H net income of £55m compared with a net loss of £254m a year ago. Recently, the Co could increase its 1H dividend payment by 5%, according to Times' report. Earlier, the Co may consider buying Pacific & Orient BHD, a Malaysian general insurer. From a technical view, the stock remains well supported by a key horizontal level at 550p. A re-test of the 600p resistance should be in sight before any further bounces to 620p and then to 650p.

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

 

Corporate Calendar August 9th - August 13th

Date

Market

Company

Event

Monday, August 9th

 

 

AS

Andritz

2nd-Quarter results

 

GE

Qiagen

2nd-Quarter results

 

IR

Dragon Oil Plc

1st-Half results

 

US

King Pharmaceuticals

2nd-Quarter results

 

US

Scripps Networks Interactive

2nd-Quarter results

 

US

Tyson Foods

3rd-Quarter results

Tuesday, August 10th

 

 

FR

GDF Suez

1st-Half results

 

GE

Hannover Re

2nd-Quarter results

 

UK

TUI Travel

3rd-Quarter results

 

UK

Intercontinental Hotels

1st-Half results

 

US

Walt Disney

3rd-Quarter results

 

US

Sysco

4th-Quarter results

Wednesday, August 11th

 

 

GE

E.ON

2nd-Quarter results

 

UK

Balfour Beatty

1st-Half results

 

US

Cisco Systems

4th-Quarter results

 

US

Macy's Inc

2nd-Quarter results

 

SZ

Adecco

2nd-Quarter results

 

SZ

Nestle

1st-Half results

Thursday, August 12th

 

 

BE

Anheuser-Busch InBev

2nd-Quarter results

 

GE

Salzgitter

2nd-Quarter results

 

UK

Prudential

1st-Half results

 

US

Sara Lee

4th-Quarter results

 

US

Estee Lauder

4th-Quarter results

 

US

Nvidia

2nd-Quarter results

Friday, August 13th

 

 

BE

Delhaize Group

2nd-Quarter results

 

GE

Thyssenkrupp

3rd-Quarter results

 

NO

Schibsted

2nd-Quarter results

 

US

JC Penney

2nd-Quarter results

 

Economic Calendar (CET) August 9th - August 13th

Date

Market

Economic data

Period

Expected

Last

Monday, August 9th

 

08:00:00

GE

Current Account (Bln)

JUN

NA

2.2

08:00:00

GE

Trade Balance (Bln)

JUN

12.7

9.7

08:00:00

GE

Imports (MoM)

JUN

NA

14.8%

08:00:00

GE

Exports (MoM)

JUN

1.3%

9.2%

Tuesday, August 10th

 

08:00:00

GE

Consumer Price Index (MoM)

JUL

0.2%

0.2%

10:30:00

UK

Trade Balance Non EU25 (Mln GBP)

JUN

NA

-4487

14:30:00

US

Nonfarm Productivity

2Q

0.4%

2.8%

14:30:00

US

Unit Labor Costs

2Q

1.4%

-1.3%

16:00:00

US

Wholesale Inventories

JUN

0.5%

0.5%

20:15:00

US

Fed: Rates decision

 

0.25%

0.25%

Wednesday, August 11th

 

08:45:00

FR

Current Account (Mln)

JUN

NA

-4.5

10:30:00

UK

Unemployment Rate (ILO)

JUN

NA

7.8%

14:30:00

US

Trade Balance (Bln)

JUN

-42.3

-42.3

16:30:00

US

Crude Oil Inventories (WoW chg)

W31

NA

-2784

20:00:00

US

Monthly Budget Satement (Bln)

JUL

-162.7

-68.4

Thursday, August 12th

 

11:00:00

EC

Euro-Zone: Industrial Production (MoM)

JUN

0.6%

1%

14:30:00

US

Initial Jobless Claims (Thsd)

W31

NA

479

 riday, August 13th

 

08:45:00

FR

GDP (QoQ)

2Q

NA

0.1%

14:30:00

US

Retail Sales

JUL

0.4%

-0.5%

14:30:00

US

Retail Sales less Autos

JUL

0.3%

-0.1%

14:30:00

US

CPI - Ex Food & Energy (MoM)

JUL

0.1%

0.2%

15:55:00

US

U. of Michigan Confidence

AUG

70.1

67.8

16:00:00

US

Business Inventories

JUN

0.3%

0.1%


 


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