Market Outlook May 4th - May 8th

On Tuesday, UBS is expected to report a 1Q loss, yet much lower than the SF11.5bln loss reported in the 1Q 2008. Technically, the stock continued to rebound last week but is now close to a 16.3 resistance. Hence, a short-term consolidation cannot be ruled out before further rise to 18 at first.

On the same day, Emerson Electric is expected to report its 2Q results, before the US market opens. EPS may reach $0.53 vs $0.75 a year ago. Recently, the Co's price target was raised to $33 from $30 at UBS. From a technically view, the stock remains well supported by its 20D MA and a medium-term horizontal support around 30.5. Hence a further rise is expected to 40.

Wednesday, BMW is scheduled to release its 1Q results. The Co may post a 1Q loss vs last year's profit. Last week, BMW said it planned to expand its partnership with Daimler on cost cuts. Earlier, the Co announced 1Q sales in China up 14% YoY to a total of 16,580 vehicles. Technically, the stock is challenging its key resistance around 27.6. If broken out, further upsides should be in sight towards 30 and 32.2 in extension.

The same day, Cisco Systems could post 3Q EPS of appx. $0.25 vs $0.33 a year earlier on sales of $8.1bln vs $9.8bln. The Co could consider investing $5bln in Mexico during the next 5yrs for its expansion in emerging markets. From a technical view, the stock is supported by a key horizontal level at 18. Since its 20D and 50D MAs remain bullish, a further rise can be considered to 20.5 and then to 21.75.

On Thursday, Vedanta Resources is expected to announce its FY results. The Co's pre-tax profit is seen at $1.14bln by analysts vs $2.7bln a year earlier. Recently, the Co reaffirmed the purchase of a 9.5% stake in HudBay Minerals, a Canadian zinc and copper producer. Earlier last month, the Co reported 4Q09 aluminium production up 31.4% YoY, Mined zinc metal output up 26.8% and iron ore production up 4.1%. Technically, the shares bounced off from its 20D MA's support and also broke above a key resistance level at 1000 last week. The next up targets stand at 1200 and 1350.