Market Outlook April 5th - April 9th Print

 

Market Outlook

- US : US indices closed slightly up last week helped by gains in the Energy (+4.02%), Materials (+3.19%) and Utilities (+2.28%) sectors. Shares in the Real Estate (-0.73%), Software (-0.95%) and Auto (-4.71%) sectors fell WoW. The S&P 500 index reached a new 52w high Thursday. On Friday, the Bureau of Labor Statistics reported March nonfarm payrolls up 162k (184k expected) after a 14k decline in February. The unemployment rate was unchanged at 9.7%. From a technical point of view, the trend on the S&P 500 remains on the upside with an up target at the major threshold at 1200. Only a break below 1130 would reinstate the short term downside risk.

- EUROPE : European indices rose last week except the IBEX in Spain (-0.21%) and SMI in Switzerland (-0.08%). Shares in the Basic Resources (+5.04%), Media (+2.6%) and Insurance (+2.01%) sectors rose most. The Health Care (-1.4%) sector was the only one to record a week on week decline for the second week in a row. On the STOXX 600, as long as 257 holds the index can continue its up move to 270 and 275. European markets are closed today.

 

  April 5th - April 9th

 

Market Round up

 

Weekly chg (%)

Last

Dow Jones

0.8

10927.1

Nasdaq 100

0.5

1959.6

Dax Xetra

1.7

6235.6

Cac 40

0.8

4034.2

 Foreign Exchange

Euro/dollar : The pair is rebounding on its support but remains within a bearish channel. SHORT below 1.38 towards 1.30 & 1.25.

Dollar/yen : The pair has broken above its bullish flag upper boundary and is approaching its next resistance. Target 96.00 or even 97.50.

Company preview

Monsanto (USD 70.83 ; -0.59% ; MON ; MON.N)
On Wednesday, Monsanto is expected to post 2Q EPS of $1.7 compared to $2.12 a year ago on sales of $3.88bln vs $4bln. On March 30, the Co's price target was cut to $80 from $91 at Citigroup. Technically, the stock remains under pressure below a declining trend line and its declining 50d moving average (@$74.2). The risk is now a slide below $70, which should spark a bearish acceleration towards $67.

border=0 Bed Bath & Beyond (USD 44.18 ; 0.64% ; BBBY ; BBBY.O)
The same day, Bed Bath & Beyond Inc, the US nationwide chain of retail stores, may deliver 4Q EPS of $0.72 vs $0.55 a year earlier on sales of $2.1bln vs $1.92bln. On March 30, the Co's price target was raised to $44 from $41 at Barclays with an "equalweight" rating unchanged. From a technical point of view, the stock is forming a "bullish flag" above its ST rising moving average. Hence, further upside can be expected to $47 and $48.3.

border=0 Hennes & Mauritz (B) (SEK 477.1 ; -0.98% ; HMB ; HMb.ST)
Thursday in the Europe, Hennes & Mauritz (B) could announce 1Q net income of SK3.5bln vs around SK2.58bln a year ago on revenue of SK25.1bln vs SK23.3bln. The Co said it would consider splitting each of its shares in two to make them more accessible. From a technical view, the stock continued to rebound last week, backed by its ascending 20D MA. Above SK455, further advance is more likely towards SK500.

border=0 Vedanta Resources (GBp 2863 ; 4.45% ; VED ; VED.L)
On the same day, Vedanta Resources, the UK-based mining Co, is expected to unveil FY net income of appx. $550m compared with $219m for the previous year. Recently, the Co's board raised the Co's share buyback program to $500m from $350m. Graphically, the stock price broke above a former major resistance around 2800p last week and should continue an up trend to challenge its latest peak at 2967p in the forthcoming days.

border=0 Chevron (USD 76.69 ; 3.92% ; CVX ; CVX.N)
The same day in the US, Chevron, the energy Co, may post 1Q EPS of around $1.7 compared with $0.75 a year earlier. Recently, Fitch Ratings reaffirmed the Co's IDR at "AA/F1+" with a "stable" outlook. Earlier, CEO John Watson said the Co could cut 2,000 jobs and also sell some assets this year to save costs. Technically, the stock rebounded strongly last week. A test of $77 should be in sight before further upside towards $80.

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


Corporate Calendar April 5th - April 9th

Date

Market

Company

Event

Monday, April 5th

 

   

No major earnings expected

 

Tuesday, April 6th

 

   

No major earnings expected

 

Wednesday, April 7th

 

 

FR

Maurel & Prom

annual results

 

US

Family Dollar Stores

1st-Quarter results

 

US

Monsanto

2nd-Quarter results

 

US

Bed Bath & Beyond

4th-Quarter results

Thursday, April 8th

 

 

UK

Vedanta Resources

annual results

 

SW

Hennes & Mauritz (B)

1st-Quarter results

 

SW

Industrivarden AB

1st-Quarter results

 

US

Chevron

1st-Quarter results

Friday, April 9th

 

 

US

Constellation Brands

2nd-Quarter results


Economic Calendar (CET) April 5th - April 9th

Date

Market

Economic data

Period

Expected

Last

Monday, April 5th

 

16:00:00

US

ISM - Non Manufacturing

MAR

53.4

53

Tuesday, April 6th

 

   

No major economic data expected

     

Wednesday, April 7th

 

16:30:00

US

Crude Oil Inventories (WoW chg)

W13

NA

2929

21:00:00

US

Consumer Credit (Bln)

FEB

-0.562

4.958

Thursday, April 8th

 

   

No major economic data expected

     

Friday, April 9th

 

16:00:00

US

Wholesale Inventories

FEB

0.3%

-0.1%


 


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