Strong week for US and European stocks

MARKET OUTLOOK

- US: US markets rose week-on-week helped by strong gains from stocks in the retailing, cons. durables and transportation sectors. Energy stocks remained under pressure signaling market anticipation of a slow down of the US economy next year. Watch Wednesday's interest rate decision from the Fed. Economists expects Fed Funds to remain unchanged at 5.25%. Technically, US indices remain positively oriented, above their rising 20d moving averages. New highs for the year are at hand for the Dow Jones (11670) and S&P500 (1326.7).

- EUROPE: European markets rose last week except the FTSE 100 which closed flat week-on-week. Stocks from the retail, insurance and technology sectors drove markets higher. Stocks from the oil and gas and basic resources remained the laggards. Technically, the European indices have regained their upside momentum despite their decline early September. The May highs can still be considered as long as European indices remain above their rising 20d moving averages.

COMPANY PREVIEW

Oracle (USD 16.33 ; 2.64% ; ORCL ; ORCL.O)

Oracle reports on Tuesday after market. The market expects 1Q/Aug EPS of $0.161 ($0.14 a year ago) on a revenue of $3.468bln ($2.768bln). The street will focus on the product development segment of the report for clues to the group's performance moving forward.

Morgan Stanley (USD 70.95 ; 6.39% ; MS ; MS.N)

Morgan Stanley delivers on Wednesday its 3Q/Aug results. EPS is seen at $1.36 ($1.09 a year ago). On September 13, the group announced it had received a licence from the Qatar Financial Centre Regulatory Authority to operate as an authorised firm in the Qatar Financial Centre (QFC).

Fedex Corp (USD 105.9 ; 5.15% ; FDX ; FDX.N)

Fedex announces on Thursday 1Q/Aug earnings. The market expects EPS of $1.517 ($1.25 a year ago) on a revenue of $8.407bln ($7.707bln). On August 27, FedEx Express, a unit of FedEx, and the Air Line Pilots Association announced they reached a 4Y tentative agreement labour contract.

ENI (EUR 22.61 ; -3% ; ENI ; ENI.MI)

ENI reports on Thursday 1H results. Last year, the group's 1H net profit was E4.343bln and EBIT reached E8.041bln. In other news, Gazprom and ENI announced last Tuesday that an agreement covering 'the entire production, extraction and distribution chain of gas, oil, electricity and liquid natural gas' will be signed on October 15.

Pernod-Ricard (EUR 170.6 ; 2.16% ; RI ; PERP.PA)

Pernod Ricard delivers on Thursday its FY results. FY sales increased 68% to E6.066bln due to a structure effect (+61%) linked to the acquisition of Allied Domecq on July 26 2005, a favourable currency effect (+3.1%) and vigorous organic growth of 4.3%. The market expects FY net income of E687.6m.