market Outlook December 14th -18th

Market Outlook

- US : US indices consolidated last week as the S&P 500 and Nasdaq 100 were unchanged WoW. Gains in the Media (+4.7%), Utilities (+3.56%) and Health Care Equipment (+2.79%) sectors were offset by declines in the Semiconductors (-1.5%), Real Estate (-1.5%) and Banks (-3.37%) sectors. Technically, indices may continue to trade up but the momentum is weak and the end of the year period is likely to limit risk taking appetite from investors.

- EUROPE : European indices fell last week driven by losses in the Financial Services (-2.81%), Insurance (-3.27%) and Banks (-4.36%) sectors. Uncertainty surrounding the rising public debt in Greece and Spain enticed investors to lock in recent gains. Outside Europe, Abu Dhabi has agreed to provide $10bln in financing to the Dubai Financial Support Fund allowing Dubai World to repay $4.1bln in Islamic sukuk bonds due today. Once again, technically the outlook remains uncertain around the current level with the 250/52 area on the Stoxx 600 index a key level to break for further upside.

  December 14th - December 18th

Market Round up

 Foreign Exchange

Euro/dollar : The pair is pulling back on its bullish channel lower boundary ahead of a rebound. LONG above 1.4450 towards 1.5150 & 1.55.

Dollar/yen : The pair has struck against its resistance and should reach its next support. SHORT @ 92.3 with 84.80 or even 82.50 in sight.

Company preview

 Best Buy (USD 44.34 ; 1.26% ; BBY ; BBY.N)
On Tuesday, Best Buy Co. is expected to deliver 3Q EPS of $0.42 compared to $0.35 a year earlier on sales of appx. $12bln vs $11.5bln. Recently, the Co said it planned to expand in China by adding 10 to 15 stores there next year. Technically, the stock remains on the upside above a MT ascending trend line. As long as $41.5 holds on the downside, further advance is seen towards $47 in the coming days.

 Adobe Systems (USD 35.38 ; -3.07% ; ADBE ; ADBE.O)
The same day, Adobe Systems may announce 4Q EPS fell to $0.37 from $0.54 a year earlier on sales of appx. $740m vs $915m in the same period a year ago. Last month, the Co and Conde Nast Publications said they would work together on digital magazines. From a technical view, the stock continued to move within a trading range between $34.5 and $37 and may test the lower boundary at first in the forthcoming days.

 Nike (USD 63.86 ; -0.68% ; NKE ; NKE.N)
Thursday, NIKE could post 2Q EPS of $0.71 compared to $0.8 a year earlier while sales may reach around $4.4bln vs $4.6bln a year ago. Recently, the Co's board declared a quarterly cash dividend of 27 cents per share, representing an 8% increase over the previous quarterly rate. From a technical point of view, the stock rebounded on the lower boundary of its trading range between $61.5 and $66.5 last week. We are cautiously bullish above $61.5 and expect a re-test of $66.5 in sight.

 Oracle (USD 22.78 ; -0.22% ; ORCL ; ORCL.O)
The same day, Oracle, is expected to release 2Q EPS of $0.36 compared to $0.31 a year ago on sales of $5.7bln vs $5.6bln, after the market closes. Last month, the Co received an extension of EU regulator's deadline to review its purchase of Sun Microsystems. Technically, the shares leveled off from its rising trend line last week with a bullish gap. We expect a test of the $23 resistance in sight before a further bounce to $23.6.

 Fedex Corp (USD 87.94 ; 0.01% ; FDX ; FDX.N)
Fedex Corp may unveil its 2Q results on Thursday. Last year, the Co reported EPS of $1.58 on sales of $9.5bln. A week ago, the Co forecast earnings of $1.10 per diluted share for the 2Q, down 30% from $1.58 per diluted share a year ago. The Co's previous guidance was $0.65 to $0.95 per diluted share, primarily due to better-than-expected growth in FedEx International Priority and FedEx Ground. Technically, the stock remains well positively oriented, backed by a rising 20D MA. A further bounce is highly expected to $92.5 and $96 in the coming weeks.

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

Corporate Calendar December 14th - December 18th

Economic Calendar (CET) December 14th - December 18th