European markets enjoy strong week

MARKET OUTLOOK

- US: After a weak start, US markets rose at the end of the week thanks to better than expected November retail sales data and helped by reassuring earnings reports and technical buying. Stocks from banks, financial, insurance, telecom and energy outperformed the market while transport, auto and real estate sectors lost ground. Technically, the starting new rise should continue during the week.

- EUROPE: European markets had a strong positive week as almost all indexes have reached new year highs. Again, all sectors closed the week on a positive note helped by stocks from telecom, retail, financial services and basic resources. The media sector remained flat over the week. Technically, the bias should remain bullish but indicators are overbought, calling for caution.

COMPANY PREVIEW

Morgan Stanley (USD 79.26 ; 0.83% ; MS ; MS.N)

Morgan Stanley is expected to announce on Tuesday its 4Q/Nov results. EPS may reach $1.77 ($1.38 a year ago). The Co should post strong EPS results. Analysts will review MS's performance in institutional securities, asset management, credit cards, prime brokerage, and trading. Last week, Goldman Sachs reported 4Q EPS of $6.59 ($6.17 expected).

Lennar Corp (USD 53.02 ; 1.4% ; LEN ; LEN.N)

Lennar will also report on Tuesday. The group is expected to announce 4Q/Nov EPS of $1.06 ($3.54 a year ago) on a revenue of $3.95bln ($5.03bln). In September, the group said profit fell in 3Q, the first decline in six years, after a slump in demand forced the company to offer incentives to buyers. During the same period, net new orders fell about 5%, less than competitors KB Home or Beazer Homes which reported declines of more than 40%.

Biomet (USD 42 ; 5.26% ; BMET ; BMET.O)

On Wednesday, Biomet delivers its quarterly earnings. The Co is expected to reach 2Q/Nov EPS of $0.44 ($0.41 a year ago) on a revenue of $526.8m ($494.7m). Last Monday shares of Biomet rose after a report that Smith and Nephew may bid more than £5bln for the company.

Nike (B) (USD 96.05 ; -1.02% ; NKE ; NKE.N)

The same day, Nike is seen reporting 2Q/Nov EPS of $1.12 ($1.14 a year ago) on a revenue of $3.75bln ($3.47bln). The market looks for sales growth to be slightly better than 1Q of 8.6% with some gross margin improvement for the group. Analysts believe this will be offset by higher demand creation and stock option expense.

General Mills (USD 57.65 ; 0.58% ; GIS ; GIS.N)

Finally, General Mills will report earnings on Thursday. The group may say 2Q/Nov EPS reached $1.03 ($1.01 a year ago) on a revenue of $3.42bln ($3.27bln). Last Friday, Fitch affirmed the group's IDR at "BBB+", Senior Unsecured debt at "BBB+" and Commercial Paper at "F2".