US equities rebound sharply

MARKET OUTLOOK

- US: The Dow Jones and S&P 500 rebounded sharply last week as investors welcomed better than expected 1Q corporate profits (around 70% of the S&P 500 stocks that have already reported their earnings had better than expected results) and ignored high long yields and oil prices. Stocks from the energy, automobile and materials sectors gained most. Caution should prevail as the earnings season continues.

- EUROPE: European markets followed Wall Street's gains, helped by strong gains from stocks in the chemical, base products and industrial sectors. From a technical point of view, since the daily indicators on the major European indices have yet to follow through the risk is that the current bounce will remain short lived.


COMPANY PREVIEW

BP (GBp 714 ; 3.78% ; BP/ ; BP.L)

On Tuesday BP scheduled to release its 1Q results. The group recently announced it targeted a 4% increase in annual crude and natural gas production through to 2010, with 'strong' output growth beyond that.

ConocoPhillips (USD 72.5 ; 7.98% ; COP ; COP.N)

On Wednesday, ConocoPhillips posts its 1Q earnings. Earnings per share estimated at $2.33, up from $2.06 same time last year on revenue which is expected to have surged 57% to $52.46bln.

Glaxosmithkline (GBp 1483 ; -1% ; GSK ; GSK.L)

On Thursday GlaxoSmithKline publishes its 1Q results. The company's Zofran drug, which is currently used for chemotherapy patients, was found to reduce vomiting and eased the uptake of fluids in children suffering from gastroenteritis, which still cause over 200,000 hospitalizations and over 1.5m pediatric outpatient visits in the US alone each year.

Exxon Mobil (USD 65 ; 5.59% ; XOM ; XOM.N)

Before US markets open on Thursday Exxon Mobil will report its 1Q results. The market is looking for an EPS of $1.46 versus $1.15 same time last year and revenue of $100.83bln, up from $72.24bln in 2005 on rising energy prices.

Microsoft (USD 27.15 ; 0.3% ; MSFT ; MSFT.O)

After markets close on the same day Microsoft publishes its 3Q results. Earnings could be overshadowed by the company's antitrust appeal which could shape up the group's future product lines. EPS expected at $0.33 ($0.32 a year ago) on revenue of $11.04bln ($9.62bln).