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Market Outlook - June 7th - June 11th PDF Print E-mail

 

Market Outlook

- US : US indices fell last week hurt by a lower than expected May employment report and renewed concern about the debt crisis in Europe. The decline was broad based and led by shares in the Banks (-6.27%), Materials (-6.82%) and Real Estate (-7.4%) sectors. From a technical point of view on the S&P 500: daily indicators are down. Below 1120 (vs 1150 last week), the risk is for further slide to 1050 and then 1020. Expect large daily swings to prevail in the days ahead. Alternatively, a rise above 1120 would open the way to 1150/55 and then 1178/1184 (former support now resistance).

- EUROPE : European markets were mixed last week. The STOXX 600, AEX and OMX posted modest gains (less than 1%) whereas the Ibex (-5.3%) and FTSEMIB (-3.8%) were under pressure. Stocks in the Oil & Gas (-1.76%), Basic Resources (-2.22%) and Banks (-3.49%) fell whereas shares in the Personal & Household Goods (+3.79%), Health Care (+3.08%) and Food & Beverage (+2.88%) were up. On the STOXX 600, the 253 level should keep the downside pressure intact in the days ahead. Daily indicators are down and call for further slide to 230 and even 224. Volatility should remain high as investors stand on the sideline over the debt crisis in Europe.

June 7th - June 11th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

-3.2

9932

Nasdaq 100

-1.6

1832

Dax Xetra

-.1

5938.9

Cac 40

-1.7

3455.6

Foreign Exchange

Euro/dollar : The pair has broken below its previous low, the RSI is on the downside. SHORT below 1.30 towards 1.20 & 1.1750.

Dollar/yen : The pair is posting a rebound but its extend should be limited on the upside. SHORT @ 94 with 87.50 or even 85 in sight.

Company preview

Pall (USD 33.34 ; -3.33% ; PLL ; PLL.N)
Pall Corp, a US supplier of filtration, separation and purification technologies, is expected to deliver on Tuesday 3Q EPS of $0.5 vs $0.42 a year earlier on sales of appx. $600m vs $556m a year ago. From a technical view, the stock price failed to push above its resistance at $35 last week and now consolidates below the declining 20D MA. We are cautiously negative with a first target at $32.

Inditex (EUR 44.85 ; -1.57% ; ITX ; ITX.MC)
Inditex could release Wednesday 1Q net income of appx. E260m compared to E184m a year ago on sales of E2.45bln vs E2.34bln. Last week, the Co was downgraded to "equal weight" from "overweight" at Morgan Stanley. Technically, the stock price remains under pressure below a downside trend line. The risk is now a slide below the E44.5 support, which should trigger a bearish acceleration towards E42.2.

Elekta Instrument AB (SEK 193 ; 1.85% ; EKTAB ; EKTAb.ST)
The same day, Elekta AB could post FY net income of nearly SK790m compared with SK552m a year earlier on revenues of SK7.54bln vs SK6.7bln. A week ago, the Co was added to JPMorgan's "analyst focus list". Technically, the stock just broke above a former resistance around SK193, which should open the way towards 207 in the coming weeks.

Brown Forman (B) (USD 55.87 ; -1.03% ; BF/B ; BFb.N)
On Wednesday in the US, Brown Forman may announce 4Q EPS of $0.53 compared to $0.45 a year ago on sales of about $670m vs $537m. Recently, the Co's price target was raised to $58 ("neutral") from $54 ("sell") at Goldman Sachs. From a chartist point of view, the stock is holding above MT rising trend line's support. As long as $54.5 is not broken a further rise seems more likely to $59 at first.

National Semiconductor (USD 13.7 ; -4.13% ; NSM ; NSM.N)
On Thursday, National Semiconductor is expected to release 4Q EPS of around $0.29 compared to $0.09 a year earlier on sales of $385m vs $281m. Earlier, the Co was upgraded to "outperform" from "market perform" at Morgan Stanley. Technically, the stock is still trading within a range between $16 and $13 and may test the lower boundary at first in the forthcoming days.

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


Corporate Calendar June 7th - June 11th

Date

Market

Company

Event

Monday, June 7th

 

US

Altera

4th-Quarter results

Tuesday, June 8th

 

US

Pall

3rd-Quarter results

Wednesday, June 9th

 

SP

Inditex

1st-Quarter results

 

SW

Elekta Instrument AB

annual results

 

US

Brown Forman (B)

4th-Quarter results

Thursday, June 10th

 

 

US

National Semiconductor

4th-Quarter results

Friday, June 11th

 

AS

Immofinanz Immobilien

annual results


Economic Calendar (CET) June 7th - June 11th

Date

Market

Economic data

Period

Expected

Last

Monday, June 7th

21:00:00

US

Consumer Credit (Bln)

APR

-1.353

1.954

Tuesday, June 8th

08:00:00

GE

Current Account (Bln)

APR

NA

18

08:00:00

GE

Trade Balance (Bln)

APR

14.7

17.2

08:00:00

GE

Exports (MoM)

APR

-2.8%

10.8%

08:45:00

FR

Central Govt. Balance (Bln)

APR

NA

-28.877

08:45:00

FR

Trade Balance (Mln)

APR

NA

-4.728

12:00:00

GE

Industrial Production (MoM)

APR

0.9%

4

Wednesday, June 9th

10:30:00

UK

Trade Balance Non EU25 (Mln GBP)

APR

-3853.57

-4103

10:30:00

UK

Visible Trade Balance (Mln GBP)

APR

-7060.94

-7522

16:00:00

US

Wholesale Inventories

APR

0.7%

0.4%

16:30:00

US

Crude Oil Inventories (WoW chg)

W22

NA

-1902

Thursday, June 10th

08:00:00

GE

Consumer Price Index (MoM)

MAY

0.1%

0.1%

08:45:00

FR

Non-Farm Payrolls (QoQ)

1Q

NA

-0.1%

13:00:00

UK

BoE: Rates decision

 

0.5%

0.5%

13:45:00

EC

ECB: Rates decision

 

1%

1%

14:30:00

US

Initial Jobless Claims (Thsd)

W22

449

453

14:30:00

US

Trade Balance (Bln)

APR

-40.9

-40.4

Friday, June 11th

 

UK

GDP Estimate (NIESR)

MAY

NA

0.5%

10:30:00

UK

Industrial Production (MoM)

APR

0.4%

2%

14:30:00

US

Retail Sales

MAY

0.2%

0.4%

14:30:00

US

Retail Sales less Autos

MAY

0.2%

0.4%

15:55:00

US

U. of Michigan Confidence

JUN

74.6

73.6

16:00:00

US

Business Inventories

APR

0.6%

0.4%


 

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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