US, European stocks lose ground

MARKET OUTLOOK

- US: US markets lost at the end of the week following disappointing economic data. Stocks from the semiconductors, tech software and automobiles sectors stocks were among the most penalised while pharma and health care equipment stocks gained. Technically, the risk should remain corrective in the US this week.

- EUROPE: European markets remained under pressure during the last week. Stocks from the tech. automobiles and parts and banks sectors were under pressure while the travel and leisure sector gained. Technically, notwithstanding a limited technical rebound, the downside risk should prevail.

COMPANY PREVIEW

United Utilities (GBp 762.5 ; -0.52% ; UU/ ; UU.L)

United Utilities is expected to announce on Tuesday its 1H results. Last year, 1H net income reached £5.9m and sales £1.157bln. Friday, the group was cut to 'hold' from 'buy' at Deutsche Bank.

Kroger (USD 21.65 ; -0.55% ; KR ; KR.N)

The same day before market, Kroger reports its quarterly earnings. 3Q/Nov EPS is expected at $0.28 ($0.25 a year ago) on a revenue of $14.86bln ($14.02bln). On November 3, Whole Foods Market dropped 23% after the Co cut its sales guidance for FY07.

Autozone (USD 113.38 ; -1.34% ; AZO ; AZO.N)

Still on Tuesday before market opens, Autozone delivers its 1Q/Nov results. The group may release EPS of $1.68 ($1.57 a year ago) on a revenue of $1.39bln ($1.34bln). Analysts will review the Co's same store sales, store traffic, private-label revenue, discount strategy and margins.

Bouygues (EUR 44.15 ; -1.16% ; EN ; BOUY.PA)

Bouygues is expected to announce on Thursday 3Q results. Last year, 3Q net income reached E264m and sales E6.572bln. On November 29, Alstom and Areva shares increased as Bouygues said it could make an offer and as EU air pollution restrictions could raise orders. Last Friday, the group raised its Alstom stake to 25.07%.

National Semiconductor (USD 24.17 ; -3.09% ; NSM ; NSM.N)

Finally, National Semiconductor will report earnings the same day. The group is seen delivering 2Q/Nov EPS of $0.27 ($0.32 a year ago) on a revenue of $500.5m ($544m). On November 7, the group said 2Q revenue will drop more than estimated due to a drop in demand from handset makers. Sales will decline 7%-8% from the previous period while the Co had declared in September that sales would probably fall 2%-5%.