Mixed week for US stocks, Europe flat

MARKET OUTLOOK

- US: US markets were mixed last week after January CPI ex-food and energy rose 0.3% month-on-month more than the 0.2% consensus. The Dow Jones consolidated and fell back close to the lower end of its MT ascending channel, while the Nasdaq 100 managed to gain ground week-on-week. Materials and semiconductors shares closed higher week-on-week while transportation and commercial sectors closed on a negative note. Technically, as the Dow Jones and the S&P are now close to a support area, a bounce should be seen in the forthcoming days.

- EUROPE: European markets were flat week-on-week. Stocks from the basic resources and chemicals outperformed the market while utilities, health care and travel and leisure sectors lost ground. Technically, notwithstanding a limited consolidation in the early days of the week, the MT uptrend should resume and new year highs should be seen.

COMPANY PREVIEW

Target (USD 63.1 ; 0.69% ; TGT ; TGT.N)

Target Corp publishes its results on Tuesday. The market sees 4Q/Jan EPS of $1.27 ($1.06 a year ago) on a revenue of $19.62bln ($16.95bln). Last week, rival Wal-Mart Stores said 4Q EPS rose to $0.95 ($0.89 expected) from $0.84 a year ago, while sales climbed 11% to $98.1bln, on gains in the UK and Mexico.

HBOS (GBP 1153 ; 0.09% ; HBOS ; HBOS.L)

On Wednesday, HBOS delivers its full year earnings. Last year, FY net income reached £3.23bln, pre-tax profit £4.81bln, EBIT £4.72bln and net interest income £6.83bln. The street sees FY net income adjusted of £3.71bln, pre-tax profit of £5.4bln and EBIT of £5.37bln. In other news, British banks may have to pay back approximately £10bn of penalty charges if the Office of Fair Trading rules that banking fees are too high (FT).

BAT (GBp 1584 ; -0.13% ; BATS ; BATS.L)

Thursday pre-market, British American Tobacco will report its 4Q and FY results. A year ago, FY net income dropped 37.35% to £1.77bln, and sales fell 13.4% to £9.32bln. Shares of BATS on February 2 had their strongest gain in almost two months after JPMorgan Chase declared that the company is a potential takeover candidate.

AIG (USD 68.79 ; -0.48% ; AIG ; AIG.N)

The same day after market, American International Group is scheduled to announce quarterly results. 4Q/Dec EPS is expected to reach $1.49 ($0.58 a year ago). In February, the Mail on Sunday reported that the world's largest insurer is in exclusive talks to buy UK Premium Credit.

Dell Computer (USD 24.19 ; -0.78% ; DELL ; DELL.O)

Finally, Dell is expected to deliver on Thursday its 4Q results. The group may report 4Q/Jan EPS of $0.32 ($0.43 a year ago) on a revenue of $15.21bln ($15.2bln). Last week, Hewlett-Packard said 1Q profit rose 26% as it won consumer sales away from Dell. EPS reached $0.65 ex-item ($0.63 expected) from $0.42 a year earlier and sales in the quarter rose 11% to $25.1bln.