US equities look on the up

MARKET OUTLOOK

- US: US markets rose last week, with most economic sectors trading on the upside. The dollar was lower against the euro. A weaker than expected job report supported the market anticipation that the rate hike cycle is about to come to an end.

This week, there will be few corporate reports to focus on. All indices broke above recent highs calling for a new up leg. On the Dow Jones, the next resistance levels stand at 11000 and 11200. On the Nasdaq 100 the next resistance are at 1750 and 1800.


- EUROPE: European markets also had a positive start for the year, in line with Wall Street. The market will focus its attention of Thursday's ECB and BoE decisions on rates.

Both central banks should leave their benchmark rates on hold but the market will look for clues about the timing of the next move. As for the US, there will be few earnings reports to look at. Technically, European indices are set to continue their positive start.


COMPANY PREVIEW


Alcoa (USD 30.21 ; 1.89% ; AA ; AA.N)

On Monday Alcoa reports 4Q results. A profit of $0.37 per share is expected, down $0.02 from same quarter last year on a revenue 6.68bln. The company recently won a $12.5m contract from the US army to develop lightweight vehicles.


Gamesa Tecnologica (EUR 12.75 ; 2.57% ; GAM ; GAM.MC)

Gamesa Corporacion Tecnologica publishes its 4Q figures on Tuesday. The company recently secured E1.2bln in loans to refinance existing debt and fund its expansion in China and the US.


Genentech (USD 91.33 ; -0.79% ; DNA ; DNA.N)

On the same day, Genentech publishes its 4Q earnings. The company recently launched a partnership with Perlegen to study the genetics of cancer. Separately, the stock was cut to "neutral" from "outperform" by CSFB due to concerns over its price. Consensus expects a profit of $0.34 per share.


M & T Bank (USD 112.03 ; 2.08% ; MTB ; MTB.N)

Wednesday M&T Bancorp releases 4Q data. EPS expected at $1.75 ($1.61 same time last year).


Marshall & Ilsley (USD 43.97 ; 1.43% ; MI ; MI.N)

And finally Marshall & Isley reports its 4Q results on Thursday. M&I subsidiary M&I Trust Company recently completed the acquisition of First Trust Indiana with expected gains in the first quarter of $8.6m. The market is looking for a profit of $0.77 per share.