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Market Outlook May 24th - May 28th PDF Print E-mail

Market Outlook

- US:

US indices fell WoW and trading remained volatile as the deficit and debt crisis in Europe remained a cause for concern. Stocks in the Banks (-6.15%), Capital Goods (-6.2%) and Auto (-7.29%) sectors fell most. From a technical point of view on the S&P 500: daily indicators are down. Below 1150, 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 1150 would open the way to 1178 - 1184 (former support now resistance).

- EUROPE:

European markets declined WoW except in Spain where the Ibex gained about 1 percent. Stocks in the Travel & Leisure (-6.01%), Construction & Materials (-6.22%) and Basic Resources (-7.7%) fell most. On the STOXX 600, the 253 should keep the downside pressure intact in the days ahead. Daily indicators are down and call for further slide to 230 and even 224. Daily price movements should remain high as investors focus on political action rather than economic or corporate data.

 

 

May 24th - May 28th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

-4

10193.4

Nasdaq 100

-4.4

1822.8

Dax Xetra

-3.9

5829.3

Cac 40

-2.2

3466.9

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 pulling back on its support ahead of a rebound. LONG @ 91.20 with 95.60 or even 97.50 in sight.

Company preview

Marks & Spencer (GBp 330 ; -1.84% ; MKS ; MKS.L)
Tuesday, Marks & Spencer, the UK retailer is expected to release FY pre-tax profit of appx. £635m compared to £508m a year earlier on revenues of £9.3bln vs £9.06bln. Earlier, the Co's price target was cut to 370p from 400p at Deutsche Bank with a "hold" rating unchanged. From a technical view, the stock is currently testing a key support around 325. Below this level, look for a further pullback towards 300.

Burberry Group (GBp 640.5 ; -8.5% ; BRBY ; BRBY.L)
On Wednesday, Burberry Group, the manufacturer and distributor of luxury apparel and accessories, may post FY pre-tax profit of appx. £190m vs a loss of £16.1m a year ago on sales of £1.27bln vs £1.2bln. The stock price target was raised to 710p vs 640p with a "neutral" recommendation unchanged at Credit Suisse. Technically, the stock broke down its 100 MA's support last week with increased volume. A further decline should be in sight to 600p and then to 580p.

NetApp Inc (USD 32.83 ; -2.73% ; NTAP ; NTAP.O)
The same day in the US, NetApp Inc could announce 4Q EPS of $4.3 compared to $0.27 a year earlier on sales of around $1.1bln vs $880m. Recently, the Co completed the acquisition of Bycast Inc., a privately held company headquartered in Vancouver, British, Columbia, Canada. Graphically, the bias remains bullish on the stock, as long as the price holds above a MT rising trend line. A further bounce is therefore expected with targets at 34.5 and 36.3 in extension.

Richemont (CHF 37.35 ; -7.98% ; CFR ; CFR.VX)
Thursday, Richemont is expected to deliver FY net income of appx. E700m compared to appx. E1.1bln a year earlier on revenues of E5.1bln vs E5.4bln. Last week the FTD reported that the Co was close to purchasing a majority stake in Rodenstock, a German eyeglasses maker. Technically, the stock is bouncing off from its support at SF36.2. As long as the threshold remains as a support, a further up move should be in sight to SF39.8 at first.

Costco Wholesale (USD 57.44 ; -0.52% ; COST ; COST.O)
On the same day, Costco Wholesale may release 3Q EPS of $0.66 vs $0.54 a year earlier on sales of $17.6bln vs $15.8bln. Earlier, the Co increased its quarterly cash dividend to 20.5 cents a share from 18 cents previously. From a technical view, the stock rebounded last Friday, but is still capped by a declining 20D MA. Below $59, a further pullback is more likely towards $55 after a ST pause.

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


Corporate Calendar May 24th - May 28th

Date

Market

Company

Event

Monday, May 24th

 

UK

Invensys

annual results

 

US

Campbell Soup

1st-Quarter results

Tuesday, May 25th

 

BE

Befimmo

2nd-Quarter results

 

UK

Marks & Spencer

annual results

 

UK

Homeserve Plc

annual results

 

UK

De La Rue

annual results

 

US

Autozone

2nd-Quarter results

 

US

Medtronic

2nd-Quarter results

Wednesday, May 26th

 

GR

National Bank Of Greece

1st-Quarter results

 

UK

Burberry Group

annual results

 

UK

Cable & Wireless Communications

annual results

 

UK

Cable & Wireless Worldwide

annual results

 

UK

VT Group

annual results

 

US

NetApp Inc

4th-Quarter results

Thursday, May 27th

 

UK

Antofagasta

1st-Quarter results

 

UK

Man Group

annual results

 

US

HJ Heinz

1st-Quarter results

 

US

Tiffany & Co

2nd-Quarter results

 

US

Costco Wholesale

3rd-Quarter results

 

SZ

Richemont

annual results

Friday, May 28th

 

GR

Marfin Investment

1st-Quarter results

 

GR

Bank Of Piraeus

1st-Quarter results

 

UK

Severn Trent

annual results


Economic Calendar (CET) May 24th - May 28th

Date

Market

Economic data

Period

Expected

Last

Monday, May 24th

 

GE

Import Prices (MoM)

APR

NA

1.7%

16:00:00

US

Existing Home Sales (Mln)

APR

5.6

5.35

Tuesday, May 25th

10:30:00

UK

GDP (QoQ)

1Q

0.3%

0.2%

16:00:00

US

Consumer Confidence

MAY

58.94

57.9

Wednesday, May 26th

08:45:00

FR

Business Confidence Indicator

MAY

97

97

08:45:00

FR

Consumer Spending (MoM)

APR

-0.5%

1.2%

14:30:00

US

Durable Goods Orders

APR

1.6%

-0.6%

14:30:00

US

Durable Goods Ex Transportation

APR

0.3%

3.5%

16:00:00

US

New Home Sales (Thsd)

APR

415.18

411

16:30:00

US

Crude Oil Inventories (WoW chg)

W20

NA

162

Thursday, May 27th

 

GE

Consumer Price Index (MoM)

MAY

0.1%

-0.1%

08:45:00

FR

Consumer Confidence

MAY

-38

-37

14:30:00

US

Initial Jobless Claims (Thsd)

W20

NA

471

14:30:00

US

GDP (QoQ)

1Q

3.5%

3.2%

14:30:00

US

GDP Price (QoQ)

1Q

0.9%

0.9%

14:30:00

US

Personal Consumption

1Q

NA

3.6%

Friday, May 28th

 

GE

Retail Sales (MoM)

APR

NA

-1.6%

14:30:00

US

Personal Income

APR

0.5%

0.3%

14:30:00

US

Personal Spending

APR

0.3%

0.6%

15:45:00

US

Chicago Purchasing Manager Index

MAY

62

63.8

15:55:00

US

U. of Michigan Confidence

MAY

73.6

73.3


 

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