Euro-stocks in year-end rally

MARKET OUTLOOK

- US: The S&P 500 and Dow average notched their first weekly gains in three. The S&P rallied to its highest since June 2001 on December 14 and added 0.6 since December 9. The Dow was up 0.9%, led by Pfizer after the company increased its dividend. The Nasdaq was down 0.2%.On the economic front watch tomorrow's November Producer Price index and November Housing Starts, Wednesday's GDP annualized for 3Q and Thursday's November Personal income.


- EUROPE: European stocks climbed for the week, resuming an end-of-year rally. Inditex led gains by retailers, reporting better-than-expected profit. E.ON led an advance by utilities, while Philips surged the most in the Dow Jones Stoxx 50 Index. The Euro Stoxx 50 added 1.6% to a 3 1/2-year high. The benchmark's drop the week before followed five straight weekly advances.On the economic front, watch tomorrow's Euro-Zone Trade Balance for October and Thursday's UK GDP for 3Q Technically, the FTSE 100, Dax and Cac 40 remain above their 20 & 50D MAs and keep upside momentum.


COMPANY PREVIEW


Nike (B) (USD 88.5 ; 3.03% ; NKE ; NKE.N)

On Tuesday, Nike reports 2Q earnings. The market is looking for a profit of $1.02 per share compared to $0.97 same time last year on revenue of $3.43bln. The company was rated "buy" in new coverage by Citigroup.


Morgan Stanley (USD 56.88 ; 1.64% ; MWD ; MWD.N)

On the same day Morgan Stanley reports 4Q results. 4Q profit is not expected to beat last year's figures due to $250m in credit-card losses combined with the loss of several top-level executives. EPS $1.08 (last year $1.09) on revenue of $6.5bln. .


Fedex Corp (USD 99.9 ; 1.86% ; FDX ; FDX.N)

On Wednesday Fedex publishes 2Q earnings. The market is looking for EPS $1.4 compared to same time last year $1.21 on revenue of $8.06bln. The company was recently upgraded to "buy" from "sell" .


General Mills (USD 49.75 ; 3.32% ; GIS ; GIS.N)

Thursday General Mills reports 2Q results. The number 2 US cereal maker increased its FY 2006 outlook by $0.03 to $2.85 a share. The company's board of directors approved a $0.01 raise of its quarterly dividend to $0.34. Profit is anticipated at $0.96.


Conagra Foods (USD 20.51 ; 1.89% ; CAG ; CAG.N)

And finally on the same day Conagra Foods reports 2Q results. The company's CEO Gary Rodkin recently declared "it will take some time" before a "meaningful improvement" in earnings. The market is looking for EPS of $0.38 on revenue of $3.98bln.