US equities well orientated

MARKET OUTLOOK

- US: US markets were mixed last week for the end of the first quarter. The S&P 500 and Dow Jones fell while the Nasdaq 100 rose. The 10yr note reached its highest levels since June 2002. Stocks from the utilities and pharmaceutical sectors fell most on concern about rising yields. With Lucent-Alcatel merger stocks from the telecom equipment sector should be active (Ciena, Tellabs, Nortel) this week. Technically, US markets remain well oriented for now.

- EUROPE: European markets were under pressure last week with only the Cac 40 managing to stay above the positive line week on week. Stocks from the telecom and retail sectors fell most. The ECB is meeting this week but no rate hike is expected. Technically, European markets can keep their upside momentum but are close to strong resistance levels. New long positions should therefore be taken cautiously.


COMPANY PREVIEW

CNP Assurances (EUR 84.1 ; 2.94% ; CNP ; CNPP.PA)

On Tuesday CNP Assurances reports its FY results. The market is looking for a net income of E731m, up from E629m in 2004. It was reported last week that Groupe Caisse d'Epargne may sell its 17.9% stake in the French insurer to the CDC.

Constellation Brands (USD 25.05 ; -2% ; STZ ; STZ.N)

Later that day Constellation Brands reports its 4Q results. EPS expected to rise to $0.36 from $0.31 same time last year. The stock was recently rated 'equalweight' in new coverage by Morgan Stanley, shares were described as 'modestly undervalued'.

Monsanto (USD 84.75 ; 5.01% ; MON ; MON.N)

On Wednesday Monsanto is scheduled to publish its 2Q results. EPS is expected at $1.52 on revenue of $2.22bln. Citigroup recently lifted its FY EPS forecast to $2.60 from $2.54 as well as the 12-month target price to $95 from $90.

Best Buy (USD 55.93 ; 2.85% ; BBY ; BBY.N)

After the close of trading on the same day Bed Bath & Beyond posts its 4Q results. EPS is seen climbing to $0.65 from $0.59 while revenue expected to gain 11% to £1.64bln.

Research In Motion (USD 84.88 ; 1.14% ; RIMM ; RIM.TO)

And finally on Thursday Research in Motion delivers its 4Q earnings after having settled its patent dispute with NTP which threatened to shut down the most-used handheld e-mail service in the US earlier in the month.