US markets under pressure as Europe makes gains

MARKET OUTLOOK

- US: US markets were under pressure during the past week due to a lack of market moving news, and ended the week on a negative note with a general drop on Friday. Shares from real estate, utilities, tech. hardware and automobiles were among the best performers, gaining more than 2%, while food and beverage, software and pharma lost ground. Technically, due to Friday's reversal, the risk might remain corrective this week, with a test of strong support areas in sight.

- EUROPE: Despite Thursday's drop, European markets held up last week with almost all indexes reaching new highs. Stocks from technology and travel and leisure clearly led the advance, while health care and retail stocks underperformed. Technically, even if indicators are facing some strong resistances, the bias should remain positive this coming week.

COMPANY PREVIEW

Metlife (USD 63.32 ; -0.06% ; MET ; MET.N)

Metlife publishes its results on Tuesday after market. The street sees 4Q/Dec EPS of $1.18 ($1.04 a year ago) on a revenue of $12.64bln ($11.55bln). In January, the group announced that its Shanghai-based venture plans to open two branches in China this year and increase distribution through banks and phone sales to gain market share.

UBS (CHF 79.95 ; 0.88% ; UBSN ; UBSN.VX)

Still on Tuesday, UBS delivers its quarterly and FY earnings. Last year, 4Q net income reached SF6.487bln and net interest income SF2.21bln, while FY net income reached SF14.03bln and net interest income SF9.53bln. The market sees a drop in 4Q profit to SF2.79bln as last year earnings were increased due to the sale of four money-management units.

Coca Cola (USD 47.76 ; -1% ; KO ; KO.N)

Wednesday, Coca-Cola is scheduled to announce 4Q/Dec results. The group may report EPS of $0.50 ($0.46 a year ago) on a revenue of $5.76bln ($5.55bln). On February 1, the group announced it has agreed to buy Fuze Beverage LLC to add more juice, tea and energy drinks in order to catch up with PepsiCo.

Total (EUR 52.75 ; 0.19% ; FP ; TOTF.PA)

The same day, Total will report 4Q and FY results. Last year, 4Q net income reached E2.341bln and sales E39.942bln, while FY net income reached E12.27bln and sales E143.17bln. On February 4, Total's Head of Exploration and Production C de Margerie, who will become CEO of the group next Wednesday, said that the Co may consider investment in nuclear energy as oil and natural gas resources become more restricted in countries reluctant to allow foreign investments (FT).

Target (USD 61.67 ; -0.58% ; TGT ; TGT.N)

Finally, Target is expected to deliver on Friday its 4Q results. The group may report 4Q/Dec EPS of $1.27 ($1.04 a year ago) on a revenue of $19.56bln ($16.95bln). On February 8, the group reported January sales up 37.3%, same store sales up 5.1% and added that February comparable sales should increase 4%-6%.