Futures markets and currencies are welcoming
on Sunday of approval for further austerity measures in the Greek
parliament. The news could support the markets but earnings will
still dominate over the next week.
Though a Greek deal will take some risk off the table in the
short term, the credit problem in Europe should be far from over
and investors may want to position for volatility on further
Markets were generally flat last week after a 0.69% loss on
Friday wiped out earlier gains in the week. Investors were
disappointed at the slow pace of deal negotiations from Greece
and the investor-represented "troika" of the European Union,
European Central Bank and International Monetary Fund.
Chinese stocks came under pressure last week as
lower-than-expected lending and weak imports lead investors to
believe the world's second-largest economy may be slowing more
than expected. The iShares FTSE China Fund (
) slipped 2.9% on the last day of the week.
Monday, February 13
) releases its industrial production report, widely expected to
show a slowdown to 2.8% from the last reading of 3.2% on a year
The Colombian (
) Central Bank reports its monetary policy report as investors
and exporters look for guidance on the bank's dollar-purchase
program to stem the appreciation in the peso. Latin American
currencies have strengthened this year and put pressure on the
region's exporters, increasing rhetoric of the "currency wars"
seen last year. Both Colombia and Brazil (
) have enacted dollar purchase programs while Chile (
) is also expected to enact its own program at some point.
Concord Medical Services (
) is expected to report $0.14 per share in fourth quarter
earnings after the market closes. This would be slightly above
earnings last quarter and during the same quarter a year ago at
$0.13 per share. The company operates a network of radiotherapy
and diagnostic imaging centers in China across 36 cities and 21
Tuesday, February 14
) retail sales should show a slowdown to around 6.0% from last
month's annualized figure of 6.8%. Though the economy is
generally rebounding from a weak quarterly performance recently,
import restrictions in neighboring Argentina (
) and a strengthening Real could put pressure on specific
) is expected to keep its overnight rate at 5.0% on Tuesday
though the risk is to a surprise cut. Inflation reports have
generally moderated and an increase in rates would put further
upward pressure on the country's currency. Peru (
) kept its rate on hold at 4.25% last week as inflationary
expectations came down to within the bank's target range and
growth looked to be on a strong pace.
Wednesday, February 15
) retail sales come out on Wednesday and are expected to decrease
to around 5.1% from last month's reading of 6.4% annualized.
) reports GDP and is expected to show a slowdown to 4.8% from
5.8% reported last quarter. The country's economy has held up
relatively well through the European debt crisis due to a
stronger dependence on internal demand compared to other emerging
) will report earnings after the close with expectations for
$1.02 per share, up three cents from the last quarter but up 23%
from the same quarter last year. The company develops and
delivers online gaming applications to the internet in China.
Though the company has beaten expectations regularly in the past,
there is some fear that the shares will come under the same
weakness that hit SOHU.com (
) when it reported first-quarter revenues last week.
Soufun Holdings (
) is expected to report earnings of $0.54 per share before the
market opens. The $1.3 billion company operates a real estate
internet portal and home furnishing website in China.
Tam Airlines (
) reports earnings before market open on Tuesday. The
Brazil-based company is expected to report a gain of $0.44 per
share. LAN Airlines (
), a Chile-based airline, recently reported that the country's
supreme court should take up its case for mitigation
measures of the merger for the two companies in early
March and that the merger may be consolidated in the second
Teva Pharmaceuticals (
) reports earnings before market open and is expected to show a
gain of $1.58 per share for the fourth quarter. This would be
26.4% above earnings for last quarter and the same quarter last
year, both at $1.25 per share. The Israeli company develops,
produces, and markets generic drugs in all treatment categories
across the globe. Shares trade for 13.1 times trailing earnings
and pay a 2.0% dividend yield.
Ultrapar Participacoes (
) is expected to report earnings on Wednesday. The $28 billion
Brazilian holding company operates in three sectors: fuel
distribution, chemicals, and logistics for liquid bulk. Shares
are 3.4% off their 52-week high and trade for 21.7 times trailing
Thursday, February 16
) reports GDP numbers on Thursday and could show a slowdown to
around 3.8% from last quarter's report of 4.5% on an annualized
basis. A weaker currency over the last quarter may support
exports but an appreciation of almost 9.0% against the dollar
since the beginning of the year could mean export weakness in the
Baidu Inc (
) reports earnings after the close and is expected to show a gain
of $0.90 per share. The company is a Chinese-language search
provider and generates revenues through online marketing services
provided through its website. The company has beaten expectations
11 consecutive quarters but shares have been relatively flat over
the last 12 months.
Friday, February 17
Gold Fields (
) is expected to report earnings of $0.52 per share on Friday.
The $11.9 billion South African company is engaged in the
exploration and extraction of gold and copper in mines primarily
in South Africa, Ghana, Australia and Peru.
Yingli Green Energy Holdings (
) is expected to report a loss of $0.18 per share before the
market opens on Friday. This would be the second consecutive
quarterly loss after eight quarters of profits. The Chinese
manufacturer of photovoltaic modules and systems has seen its
shares drop from $13.59 over the last year but are currently off
the 52-week low of $5.34 per share. Shares have been under
pressure over the last few weeks as the Chinese government
announced a cut in solar subsidies.