Fed's rate decision boosts US stocks

MARKET OUTLOOK

- US: US markets rose week-on-week but showed signs of weakness on Friday. The Dow Jones reached a new high helped by the Fed's decision to leave its benchmark rate unchanged at 5.25% and the positive comments on the inflation side. Shares from energy, health care equipment and capital goods were among the best performers while automobile and media sectors lost ground. Technically, notwithstanding some limited partial profit taking, the week should remain positive.

- EUROPE: European markets followed Wall Street and closed the week on a strong positive note. Stocks from basic resources, chemicals, construction and materials led the advance while technology and telecommunications declined week-on-week. Technically, the outlook remains positive and a new bullish wave should be seen in the forthcoming days.

COMPANY PREVIEW

Cisco Systems (USD 27.14 ; 3% ; CSCO ; CSCO.O)

Cisco Systems publishes its results on Tuesday. The market sees 2Q/Jan EPS of $0.31 ($0.23 a year ago) on a revenue of $8.3bln ($6.63bln). The group had a breakout 1Q07, with strong order trends and market share gains. 2Q07 showed also show solid trends and in-line results are expected with a slight possibility for upside. Focus will be put on growth in emerging markets as well as the Co's continued expansion of its sales and marketing headcount.

BP (GBp 535 ; -0.93% ; BP/ ; BP.L)

Still on Tuesday, BP delivers its quarterly and FY earnings. Last year, 4Q net income was $3.685bln and total revenues $65.91bln, while FY net income reached $22.34bln and total revenues $253.62bln. BP agreed last week to sell its Coryton refinery in Essex, the adjacent bulk terminal and its UK bitumen business to Petroplus Hldg for $1.4bln.

News Corp (USD 23.32 ; 1.83% ; NWS/A ; NWS-A.N)

Wednesday, News Corp is scheduled to announce 2Q/Dec results. The group may report EPS of $0.26 ($0.22 a year ago) on a revenue of $7.37bln ($6.66bln). Last week, Time Warner said 4Q profit rose 34% partly due to the purchase of Adelphia Communications's cable-television unit. EPS reached $0.44 from $0.28 a year earlier. Sales gained 8.2% to $12.5lbn.

Roche Holding (CHF 237 ; 1.67% ; ROG ; ROG.VX)

The same day, Roche Holding will report FY results. Last year, FY net income reached SF5.79bln and sales SF35.5bln. Last week, Roche Holding won EU approval to sell its Tarceva drug for patients with pancreatic cancer. Regulators allowed Roche to sell Tarceva in combination with standard chemotherapy for patients whose cancer has spread.

Pepsico (USD 65.04 ; 0.92% ; PEP ; PEP.N)

Finally, Pepsico is expected to deliver on Thursday its 4Q results. The group may report 4Q/Dec EPS of $0.72 ($0.65 a year ago) on a revenue of $10.38bln ($10.1bln). Last week, Pepsi Bottling Group said 4Q profit rose 80% due to strong Europe sales and tax gain. EPS reached $0.55 from $0.30 a year earlier, and the group added that 1Q EPS will be in the range of $0.09-$0.11 ($0.12 expected).