European stocks rally

MARKET OUTLOOK

- US: US stocks rose this week as Federal Reserve Chairman Ben Bernanke foreshadowed an end to the central bank's two-year campaign of interest-rate increases.


- EUROPE: European stocks had the biggest weekly gain this month on speculation that earnings growth will be sustained and a two-year run of US interest-rate increases may soon end.



COMPANY PREVIEW


Merck (USD 37.36 ; 3.35% ; MRK ; MRK.N)

Merck publishes its results on Monday. The market expects the group to issue an EPS of $0.65, up from the $0.63 posted last year. The company declared that EPS will increase at "a rate in the double digits" between 2007 and 2010.


McDonald's (USD 34.7 ; 5.02% ; MCD ; MCD.N)

McDonald's reports its results Tuesday. The market will be looking for an EPS of $0.57. The group was recently raised to "outperform" from "inline" by Goldman Sachs.


BP (GBp 619.5 ; -3.66% ; BP/ ; BP.L)

BP reports 2Q results on Tuesday. The group, who had recently shut a dozen wells on Alaska's North Slope to investigate leaks of material, has failed to remove the sludge from the pipelines, a step needed to prevent another massive oil leak (FT).


Altria (USD 79.67 ; 2.95% ; MO ; MO.N)

Altria reports its 2Q results on Tuesday. EPS is seen at $1.37, down from the $1.40 it reported last year, on revenue of $17.87bln. The stock's target price was recently raised to $105 from $85 by JPMorgan.


ConocoPhillips (USD 63.63 ; -5.66% ; COP ; COP.N)

On Wednesday ConocoPhillips reports its 2Q results. The market will be looking for an EPS of $2.80, up from $2.21 a year ago on revenue which is expected to have surged 41% to $53.12bln. 1Q EPS reached $2.34, against $2.06 the year before. The group is undervalued at a time when prices for crude oil are reaching records highs (Business Week).