US markets not looking good

MARKET OUTLOOK

- US: US markets fell for a second straight week after government reports on inflation spurred concern the Federal Reserve will keep raising interest rates. Banks and utilities had the worst performances out of 10 industry groups in the S&P 500. Thursday's leading indicators and Friday's durable good orders will be key data for the week ahead. US indices should remain under pressure.


- EUROPE: European stocks fell for a third week on speculation that the outlook for higher interest rates worldwide will hurt economic growth and earnings. TeliaSonera fell amic concern about its plan to spend more than $1bln in Spain. E.ON paced a decline by utilities. There are few earnings reports expected this week. On the economic side, watch Tuesday's Germany Producer prices and Wednesday's French Consumer spending. On the index side, the risk is still for further downside.



COMPANY PREVIEW


Kroger (USD 19.61 ; -0.41% ; KR ; KR.N)

On Tuesday Kroger KR reports its 1Q results. The market is looking for an EPS of $0.42, up from $0.40 from a year ago on revenue up 5.5% to $18.94bln.


Hennes and Mauritz (B) (SEK 260 ; -0.57% ; HMB ; HMb.ST)

On Wednesday Hennes & Mauritz HMB scheduled to report its 2Q results. Net income is expected to rise 10% to SEK2.60bln from SEK2.36bln on revenue which is seen rising 11% to SEK17.2bln. Inditex, H&M's largest rival, exceeded expectations when it reported its 1Q results last week.


Morgan Stanley (USD 56.99 ; -3.72% ; MS ; MS.N)

On the same day Morgan Stanley MS reports its 2Q results. The market is expecting a 52% surge in EPS to $1.45 from the $0.95 posted last same time last year, below however the record levels set in the 1Q.


Fedex Corp (USD 109.64 ; 2.88% ; FDX ; FDX.N)

FedEx FDX later that day posts its results. EPS is expected to rise to $1.77 up from $1.46 same time last year on revenue which is expected to have increased 9% to $8.42bln.


Bed Bath and Beyond (USD 36.47 ; 3.29% ; BBBY ; BBBY.O)

And finally after the close of trading on Wednesday, Bed Bath and Beyond BBBY reports its 1Q results. The market will be expecting an estimated earning per share of $0.35, up from $0.33 on revenue expected to have increased 12% to $1.39bln.