Market Outlook July 12th - July 16th Print

 

Market Outlook

  July 12th - July 16th

 

Weekly chg (%)

Last

Dow Jones

4.8

10198

Nasdaq 100

4.6

1814.8

Dax Xetra

4.3

6065.2

Cac 40

7

3567.3

Foreign Exchange

Euro/dollar : The pair has posted a rebound but stands below its MT declining trend line. SHORT below 1.2750 towards 1.2130 & 1.1750.

Dollar/yen : The pair has broken below its bearish channel lower boundary and remains under pressure as the RSI is badly directed. SHORT @ 89.80 with 85 or even 83 in sight.

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Company preview

Intel (USD 20.24 ; 5.14% ; INTC ; INTC.O)
On Tuesday, Intel is expected to deliver 2Q EPS of $0.43 compared to $0.2 a year earlier on sales of $10.2bln vs $8bln.Recently, Infineon Technologies could reach a deal to sell its mobile-chip unit to the Co for $1.4bln. From a technical view, the stock bounced off from a MT support level around $19 last week. Nevertheless, the price is still capped by a major downside resistance since last April. Below $21.2, look for a pullback to $19 and even to $18 as possible

Google (USD 467.49 ; 6.37% ; GOOG ; GOOG.O)
On Thursday, Google, a global technology giant, may post 2Q EPS of $6.5 compared with $4.66 a year ago on sales of appx. $5bln vs $5.5bln. Last week, Chinas government confirmed it renewed the Co's Internet operating license in China, according to Xinhua News. Technically, the stock price gapped up in the latest session and is currently testing its resistance of the declining 20D MA. In which case, a ST consolidation cannot be ruled out before any decisive moves.

JP Morgan Chase (USD 38.85 ; 7.68% ; JPM ; JPM.N)
The same day, JPMorgan Chase could release 2Q EPS of $0.7, in line with the same period last year. Earlier, the Co completed its purchase of the assets of RBS Sempra Commodities business for $1.6bln. From a chartist view, the shares might be forming a "double-top" pattern in the medium term with the neckline around $37.2. The "clear" breakout of this threshold should trigger a new leg down to $31.7 and $29.8 in extension.

Novartis (CHF 52.25 ; 3.26% ; NOVN ; NOVN.VX)
Thursday in Europe, Novartis is expected to publish 2Q net income of $2.6bln compared with around $2bln a year earlier on revenues of $11.5bln vs $10.6bln. Earlier this month, the Co would seek approval to widen the use of its Afinitor cancer drug. In addition, the stock price was upgraded to "overweight" from "equal weight" at Morgan Stanley. Graphically, the shares rebounded slightly but remains under pressure below $53. A re-test of the horizontal support at $50 should be in sight, if breakout, see further downsides towards $47.3

General Electric (USD 14.95 ; 5.88% ; GE ; GE.N)
On Friday, General Electric may announce 2Q EPS of $0.27 compared to $0.31 a year ago on sales of $38.3bln vs $39bln. Recently, the Co won appx. $300m contracts in Oman. The Co's price target was cut to $19 from $20 with a "hold" rating unchanged at Deutsche Bank. Technically, the stock is still under pressure below a key resistance level at $15.2 and also remains capped by a downside 20D MA. Hence, a further pullback is more likely to $14 after a ST pause.

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


Corporate Calendar July 12th - July 16th

Date

Market

Company

Event

Monday, July 12th

 

SW

Getinge B

2nd-Quarter results

 

US

CSX

2nd-Quarter results

 

US

Novellus Systems

2nd-Quarter results

 

US

Alcoa

2nd-Quarter results

Tuesday, July 13th

 

SW

Castellum

2nd-Quarter results

 

SW

Investor (B)

2nd-Quarter results

 

SW

Skandinaviska Enskilda Banken

2nd-Quarter results

 

US

Intel

2nd-Quarter results

 

US

Fastenal

2nd-Quarter results

 

US

Yum! Brands

2nd-Quarter results

Wednesday, July 14th

 

GE

Suedzucker

1st-Quarter results

 

UK

Ashmore Group

annual results

 

NE

ASML Holding

1st-Half results

 

NO

Acergy Sa

2nd-Quarter results

 

US

Marriott International

2nd-Quarter results

Thursday, July 15th

 

US

Google

2nd-Quarter results

 

US

PPG Industries

2nd-Quarter results

 

US

People's United Financial

2nd-Quarter results

 

US

JP Morgan Chase

2nd-Quarter results

 

US

Advanced Micro Devices

2nd-Quarter results

 

SZ

Novartis

2nd-Quarter results

Friday, July 16th

 

NO

Yara International

2nd-Quarter results

 

US

Gannett

2nd-Quarter results

 

US

Citigroup

2nd-Quarter results

 

US

Mattel

2nd-Quarter results

 

US

General Electric

2nd-Quarter results

 

US

Bank of America

2nd-Quarter results


Economic Calendar (CET) July 12th - July 16th

Date

Market

Economic data

Period

Expected

Last

Monday, July 12th

 

GE

Wholesale Price Index (MoM)

JUN

NA

0.3%

08:45:00

FR

Current Account (Mln)

MAY

NA

-3.5

10:30:00

UK

Current Account (Bln)

1Q

-4.154

-1.68

10:30:00

UK

GDP (QoQ)

1Q

0.3%

0.3

Tuesday, July 13th

08:45:00

FR

Consumer Price Index (MoM)

JUN

NA

0.1%

10:30:00

UK

CPI - EU Harmonised (MoM)

JUN

0.1%

0.2%

11:00:00

GE

Zew Survey (Econ. Sentiment)

JUL

24.3

28.7

11:00:00

GE

Zew Survey (Current Situation)

JUL

NA

-7.9

14:30:00

US

Trade Balance (Bln)

MAY

-39.3

-40.3

20:00:00

US

Monthly Budget Satement (Bln)

JUN

-75.1

-135.9

Wednesday, July 14th

10:30:00

UK

Unemployment Rate (ILO)

MAY

7.91%

7.9%

11:00:00

EC

Euro-Zone: Industrial Production (MoM)

MAY

NA

0.8%

14:30:00

US

Retail Sales

JUN

-0.1%

-1.2%

14:30:00

US

Retail Sales less Autos

JUN

0%

-1.1%

16:00:00

US

Business Inventories

MAY

0.3%

0.4%

16:30:00

US

Crude Oil Inventories (WoW chg)

W27

NA

-4961

Thursday, July 15th

14:30:00

US

Initial Jobless Claims (Thsd)

W27

NA

454

14:30:00

US

Producer Price Index (MoM)

JUN

-0.1%

-0.3%

14:30:00

US

Empire Manufacturing

JUL

17.3

19.6

15:15:00

US

Industrial Production (MoM)

JUN

-0.1%

1.3%

15:15:00

US

Industrial Capacity Utilization

JUN

74.2%

74.1%

16:00:00

US

Philadelphia Fed.

JUL

10.1

8

Friday, July 16th

11:00:00

EC

Euro-Zone: Trade Balance (Bln)

MAY

NA

1832.9

11:00:00

EC

Euro-Zone: Trade Balance (Bln) (MoM)

MAY

NA

1832.9

14:30:00

US

Consumer Price Index (MoM)

JUN

0%

-0.2%

14:30:00

US

CPI - Ex Food & Energy (MoM)

JUN

0.1%

0.1%

15:55:00

US

U. of Michigan Confidence

JUL

74.2

76

 

This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice.