Job reports support US markets

MARKET OUTLOOK

- US: US markets advanced at the end of the week after better than expected job reports outweighed concern that banks face mounting credit losses. Stocks from software, semiconductors, technical hardware and utilities were among the best performers, while commercial, banks, retailing and energy slumped last week. Technically, the bullish momentum on most indexes is beginning to decrease. This calls for caution in the coming days and a downturn cannot be ruled out.

- EUROPE: European markets fell week-on-week over concerns that the full impact of the credit crunch has not yet been seen. Shares from retail, food and beverages and healthcare managed to outperform the market, while stocks from basic resources, technology and chemicals lost ground. From a technical point of view, major European indexes are about to break out their ST ascending channels. Thus, a downside acceleration should be seen soon.

COMPANY PREVIEW

Archer Daniels Midland (USD 34.84 ; -0.63% ; ADM ; ADM.N)

Today, Archer Daniels Midland is scheduled to report Q1 EPS of $0.6 ($0.61 last year), while sales are expected to reach $10.3bn ($9.45bn last year). At the end of October, the Co formed an industrial chemicals unit to raise crop-based products sales. About a month ago, the Co began producing biodiesel at its US biodiesel plant.

Total (EUR 54.42 ; -1.7% ; FP ; TOTF.PA)

In Europe, France's Total SA is expected to unveil Q3 net income of E2.97bn (E3.11bn last year) on Wednesday. A few days ago, the Co announced its plan to join OAO Gazprom's Shtokman natural-gas project with StatoilHydro, each investing $800m. The Co began production at two lubricating oil plants, part of a joint venture with a private Iranian Co, last month and intended to invest $1.5bn next year to drill for gas in Indonesia's Borneo.

Cisco Systems (USD 32.51 ; 1.91% ; CSCO ; CSCO.O)

On the same day, Cisco Systems will report Q1 EPS of $0.28 on sales of $8.18bn. Last Thursday, the Co announced it will acquire Securent, whose software will enable the Co's customers to protect and secure. The Co also said it may almost double investments to $16bn in China over next 5Y. In the same period, the Co agreed to acquire a stake worth $17.5m in Alibaba.com.

Siemens (EUR 92.91 ; 1.19% ; SIE ; SIEGn.DE)

Thursday, Siemens is seen posting FY net income of E4.57bn (E3.1bn last year) on revenues of E82.6bn (E87.32bn). Last week, according to a report of Financial Times, the Co's CEO Peter Loescher wanted to cut 10,000 jobs in the next 5Y. In other news, the Co expected to complete the planned purchase of Dade Behring Holdings soon. On October 29, the Co won a E56m contract to supply a turbine for a dam run by EDP-Energias de Portugal.

Walt Disney (USD 33.92 ; -1.34% ; DIS ; DIS.N)

Finally, Walt Disney will announce Q4 EPS of $0.41 ($0.36 a year earlier) on sales of $8.97bn ($8.78bn). At the end of last month, the Co named Mahesh Samat to run its businesses in India. Besides, the Co plans to expand and renovate its California adventure park, which will include more attractions based on movies from Disney's Pixar animated studio and add references to company founder. It will cost the Co $1.1bn over 5Y.