Strong rally on Wall Street

MARKET OUTLOOK

- US: Wall Street had a strong rally last week. More than 2/3 of S&P500 companies have so far reported their 2Q results and the market is on track to report an 11th double digit earnings growth. This week will be very active on the earnings front while on the economic front investors will eye the July job report as well as factory orders, personal income and spending. The Fed is meeting on August 8th.

- EUROPE: European markets bounce inline with Wall Street. London had its biggest weekly gain since March 2003, trading volume remained subdued as investors race for holidays. Stocks from the auto, financial services and basic resources sectors gained most. All sectors rose week on week. The major European indices are trading above their 20D & 50D moving averages which is a positive sign for the upcoming days.


COMPANY PREVIEW

HSBC Holdings (GBp 974 ; 2.85% ; HSBA ; HSBA.L)

HSBC reports its 2Q results today. The banking group could increase its share buyback to 1bln pounds according to the Sunday Telegraph. HSBC recently completed payment processing for the venture with Global Payments in Asia.

Deutsche Bank (EUR 91.15 ; 6.55% ; DBK ; DBKGn.DE)

Deutsche Bank reports its 2Q results Tuesday, with expected net income of E1.22bln (E0.94bln same time last year). The group announced that it bought a 1% stake in Deutsche Boerse to express support for a merger of the exchange operator with Euronext.

Verizon Communications (USD 33.73 ; 5.84% ; VZ ; VZ.N)

Verizon Communication publishes its 2Q results tomorrow. The market expects the group to deliver EPS of $0.62, against $0.63 same time last year. The company recently picked Alcatel, Motorola and Tellabs to supply equipment to increase speeds for broadband internet access.

Procter & Gamble (USD 56.81 ; 1.32% ; PG ; PG.N)

Procter & Gamble is releasing its fiscal 4Q results on Wednesday, with an EPS estimate of $0.54, ($0.56 a year ago), on revenue of $17.49bln. The group may extend its lease at a packaging plant in Devens (Boston Globe).

Total (EUR 53.65 ; 6.24% ; FP ; TOTF.PA)

Total may report its 2Q results on Thursday. The market is expecting a E3.44bln net income. The group recently declared finding oil in Southern Libya.