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US markets were under pressure and European markets lose ground. Read our latest market news and company reviews provided by Internaxx.
| MARKET OUTLOOK |
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- US : US markets were under pressure wow on concern about rising inflation. The yield on the 10-year treasury note rose above the psychological level of 5%. Stocks from Utilities, Real Estate and Consumer Durables were among the worst performers, while only Food & Staples retails stocks managed to close on a positve note. On a technical point of view, regarding the swiftness of the recent sell off, a technical bounce should be seen in the early stage of the week. However, it should remain limited.
- EUROPE : European markets lost ground wow, hurt by the surge of interest rates. All sectors were under pressure wow, especially shares from Financials Services, Travel & Leisure & Utilies. Technically, notwithstanding a limited rise in the begining of the week, major european markets should still remain under pressure.
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| MARKET ROUND UP |
| Weekly chg (%) |
Last |
| Dow Jones |
-1.8 |
13424.4 |
| Nasdaq 100 |
-1.1 |
1906.3 |
| Dax Xetra |
-5 |
7590.5 |
| Cac 40 |
-4.6 |
5883.3 |
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| FOREIGN EXCHANGE |
Euro/dollar : The LT bullish channel support should favour another leg up. LONG position @ 1.334 with targets at 1.375 and 1.386.
Dollar/yen : The daily RSI is reversing down & the 122 key resistance area maintains a MT bearish bias. SHORT at 121.8 with targets at 118.2 and 116.
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| COMPANY PREVIEW |
Lehman Brothers Holdings (USD 74.19 ; -1.38% ; LEH ; LEH.N)
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On Tuesday, Lehman Brothers is scheduled to announce 2Q EPS of $1.86 ($1.69 last year). In the beginning of June, the Co acquired a significant equity stake in SkyPower and announced its plans of a $500m IPO of a private-equity fund. In other news, the firm formed Principal Strategies Group to make investments in Asia.
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Inditex (EUR 44.34 ; -5.76% ; ITX ; ITX.MC)
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Wednesday, Inditex will post 1Q net income of E187m (E150m last year) on revenue of E2.03bln (E171bln). At the beginning of the year, the group considered buying some US stores from Gap (La Gaceta de los Negocios). Lately it formed a joint-venture with Air France KLM to deliver garments to stores in Asia, the Mideast and the Americas (Expansion). Separately, the Co's founder Amancio Ortega intended to give control to his daughter when he retires (Times).
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First Choice Holidays Plc (GBp 324 ; -8.86% ; FCD ; FCD.L)
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First Choice Holidays is seen reporting 1H earnings on Thursday. Last year 1H net loss amounted to £57.8m, while revenue reached £1.01bln. In May, the group said it might sell one of Irish businesses to win European competition regulators' approval for its merger with TUI.
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Goldman Sachs (USD 225.06 ; -2.45% ; GS ; GS.N)
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In the US, Goldman Sachs may publish 2Q EPS of $4.78 ($4.78 last year). At the present, the Co is trying to assemble an extra group of bidders for New Look Group (Financial News) and denied rumours about its possible enter to the bidding group (FT). In other news, the Co sold 21% of Vueling Airlines.
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Adobe Systems (USD 43.04 ; -3.35% ; ADBE ; ADBE.O)
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Finally, on the same day, Adobe Systems is expected to release 2Q earnings. 2Q EPS is seen at $0.34 ($0.26 last year) on sales of $729m ($635.5m). On May 3, the Co signed a definitive agreement to acquire Scene7, a new technology for media delivery services, and prepared a new platform, Apollo, allowing users to work outside web browsers and connect to Internet by using a desktop icon (FT).
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Selection of those events which may affect the stock prices of international Large Caps |
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| CORPORATE CALENDAR June 11th - June 15th |
| Date |
Market |
Company |
Event |
| Monday, June 11th |
| No major expectations |
| Tuesday, June 12th |
| UK |
Biffa |
annual results |
| US |
Lehman Brothers Holdings |
2nd-Quarter results |
| Wednesday, June 13th |
| SP |
Inditex |
1st-Quarter results |
| Thursday, June 14th |
| UK |
First Choice Holidays Plc |
1st-Half results |
| US |
Goldman Sachs |
2nd-Quarter results |
| US |
Bear Stearns Companies |
2nd-Quarter results |
| US |
Adobe Systems |
2nd-Quarter results |
| Friday, June 15th |
| UK |
Carnival |
2nd-Quarter results |
| US |
Fannie Mae |
1st-Quarter results |
| US |
Carnival |
2nd-Quarter results |
| US |
Computer Sciences |
4th-Quarter results |
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| ECONOMIC CALENDAR June 11th - June 15th |
| Date |
Market |
Economic data |
Period |
Expected |
Last |
| Monday, June 11th |
| GE |
Wholesale Price Index (MoM) |
MAY |
NA |
0.8% |
| 10:30 |
UK |
PPI - Input (MoM) |
MAY |
0.7% |
0.7% |
| 10:30 |
UK |
PPI - Output (MoM) |
MAY |
0.4% |
0.5% |
| Tuesday, June 12th |
| 10:30 |
UK |
CPI - EU Harmonised (MoM) |
MAY |
0.3% |
0.3% |
| 10:30 |
UK |
Visible Trade Balance (Mln GBP) |
APR |
-7021.88 |
-7048 |
| 10:30 |
UK |
Trade Balance Non EU25 (Mln GBP) |
APR |
-3965.63 |
-3963 |
| 11:00 |
EC |
Euro-Zone: Industrial Production (MoM) |
APR |
0.2% |
0.4% |
| 20:00 |
US |
Monthly Budget Satement (Bln) |
MAY |
-59.587 |
177.674 |
| Wednesday, June 13th |
| 08:45 |
FR |
Consumer Price Index (MoM) |
MAY |
0.3% |
0.5% |
| 08:45 |
FR |
CPI - EU Harmonised (MoM) |
MAY |
NA |
0.5% |
| 14:30 |
US |
Retail Sales |
MAY |
0.6% |
-0.2% |
| 14:30 |
US |
Retail Sales les Autos |
MAY |
0.7% |
0% |
| 16:00 |
US |
Business Inventories |
APR |
0.3% |
-0.1% |
| 16:30 |
UK |
Leading Indicator Index (MoM) |
APR |
NA |
0.6% |
| Thursday, June 14th |
| 08:45 |
FR |
Non-Farm Payrolls (QoQ) |
1Q |
NA |
0.6% |
| 10:30 |
UK |
Retail Sales (MoM) |
MAY |
0.4% |
-0.1% |
| 11:00 |
EC |
Euro-Zone: CPI (MoM) |
MAY |
0.3% |
0.6% |
| 14:30 |
US |
Producer Price Index (MoM) |
MAY |
0.6% |
0.7% |
| 14:30 |
US |
Initial Jobless Claims (Thsd) |
W22 |
NA |
309 |
| 14:30 |
US |
PPI - Ex Food & Energy (MoM) |
MAY |
0.2% |
0% |
| Friday, June 15th |
| 14:30 |
US |
Consumer Price Index (MoM) |
MAY |
0.6% |
0.4% |
| 14:30 |
US |
CPI - Ex Food & Energy (MoM) |
MAY |
0.2% |
0.2% |
| 14:30 |
US |
Empire Manufacturing |
JUN |
11.21 |
8.03 |
| 15:15 |
US |
Industrial Production (MoM) |
MAY |
0.2% |
0.7% |
| 15:15 |
US |
Industrial Capacity Utilization |
MAY |
81.6% |
81.6% |
| 16:00 |
US |
U. of Michigan Confidence |
JUN |
87.8 |
88.3 |
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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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