In the UK, the FTSE100 declined 2.45% last week. From a technical view, the index remains within the MT range between 6100 and 5600, and may post a ST pause before any further upsides. Looking at economic data, UK jobless claims rose 24.5K in June (+15K anticipated) after a 22.5K increase in May, while consumer prices fell 0.1% in June (+0.2% exp.). Separately in Europe, Moody's downgraded Ireland's debt rating to "Ba1" from "Baa3" and Fitch Ratings downgraded Greece's LT/ST default ratings to "CCC/C" from "B+/B". All major European indices fell last week. The CAC 40 retreated 4.78%, while the SMI and the DAX indices fell 3.49% and 2.47% respectively. Almost all sectors closed into negative area. Among them, technology declined most by 6.47%, followed by insurance and construction and materials with losses of over 5%. Only automobiles and parts and health care ended in the positive territory. Graphically, the Stoxx 600 stands well above 262, a key MT support, which should allow for a ST stabilization. Above 262, look for a return to 281.70 in the coming weeks.
- WALL STREET:
US indices fell last week. On the economic data front, industrial production rose 0.2% (+0.3% exp.) in June while the University of Michigan preliminary index of consumer sentiment fell to 63.8 (72.2 exp.) in July. Looking at corporate earnings results, Google posted 2Q Non-GAAP EPS of $8.74 ($7.85 exp.) vs $6.45 a year ago on revenue of $9B, up 32%. Regarding sectors, almost all sectors lost ground last week. Semiconductors had the weakest performance (-5.23%), followed by diversified financials (-4.75%), automobiles and components (-4.39%), and commercial and professional services (-3.67%). On the opposite, only energy, household and personal products finished higher. Technically, the S&P500 index failed to surpass its major resistance at 1370, and started to reverse down. A further pullback is more likely in sight to 1255 (the lower boundary of a MT range pattern).
Apple (USD 364.92 ; 1.45% ; AAPL ; AAPL.O)
On Tuesday, Apple Inc, is expected to release 3Q EPS of $5.86 compared to $3.51 a year ago on sales of $25B vs $15.7B. Recently, the Co won a preliminary ruling from the US International Trade Commission that Taiwan's HTC Corp infringed two of the Co's patents. The Co's price target was raised to $485 from $470 at Goldman Sachs (the "buy" rating unchanged). Technically, the stock has just broken above its former resistance, and hit a new YTD high, which should open the upside way towards $400.
Goldman Sachs (USD 130.16 ; -2.92% ; GS ; GS.N)
The same day, Goldman Sachs, a leading global investment banking, securities and investment management firm, may announce 2Q EPS of appx. $2.3 compared with $2.75 last year. Last week, the Co declared preferred stock dividends: $239.58 per share of Floating Rate Non-Cumulative Preferred Stock, Series A; $387.50 per share for Series B; $255.56 per share for Series C; and $255.56 per share for Series D. From a chartist view, the share price remains under pressure below its bearish 50D MA. The risk is now a slide below its support at $130, which should call for a new decline towards $120.
Intel (USD 22.37 ; -3.12% ; INTC ; INTC.O)
On Wednesday, in the US, Intel could announce 2Q EPS of $0.51, in line with last year on sales of around $12.8B vs 10.8B a year earlier. Earlier, the US IT giant teamed up with Toshiba to launch a new social media film project titled "Inside". From a technical point of view, the stock consolidates above a key MT support at $22. The rising 20-day moving average also plays as a support role, and may push the price higher to at least $24 in the coming days.
Nokia (EUR 4.016 ; -5.73% ; NOK1V ; NOK1V.HE)
Thursday, Nokia is expected to release 2Q net income of around E58M compared with E227M a year earlier on sales of E9.2B vs E10B. Earlier, the Japanese press, Nikkei reported the Co could exit Japan's cellular phone market by the end of August. Recently, the Co's price target was cut to E3.5 from E4.1 at Citigroup (the "selling" rating unchanged). Graphically, the stock extended its loss last week and also broke below E4 (its former key support). Hence, a further pulling seems likely to E3.85 and E3.60 in extension.
Vodafone (GBp 159 ; -3.05% ; VOD ; VOD.L)
On Friday, Vodafone, the UK mobile telecommunications giant, may deliver 2Q pre-tax profit of £2.6B on sales of £11.7B vs around £10.4B a year ago. Earlier, the Co said it has agreed to sell its entire 24.4% interest in Polkomtel to Spartan Capital Holdings for a cash consideration of appx. E920M before tax and transaction costs. Recently, the Co planned to start its own-branded content channel on Google's Android market. Technically, the stock is currently testing its support area around 158p. The breakout of this threshold should trigger a new down move to 155p and then to 150p.
Selection of those events which may affect the stock prices of international Large Caps
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