Dow Jones hits new record high

MARKET OUTLOOK

- US: US markets were mixed during the week as the Dow Jones reached a new record high while the Nasdaq 100 declined, due to technology company forecasts being below analysts' estimates. Stocks from energy, transportation and materials outperformed, while semiconductors and tech hardware were among the worst performers. Technically, a bounce is expected on the Nasdaq 100, while the Dow Jones should continue its uptrend.

- EUROPE: After a weak start, European markets closed flat as all indexes had a big gain last Friday. Stocks from automobiles and parts and construction were positively oriented, while shares from utilities and basic Resources remained under pressure. Technically, the outlook remains positive for this week and a new upwave is favoured.

COMPANY PREVIEW

Bank of America (USD 53.59 ; 0.62% ; BAC ; BAC.N)

Banc of America publishes its results on Tuesday. The market sees 4Q/Dec EPS of $1.18 ($0.89 a year ago). Last week, Dow Jones reported that Bank of America is in talks with the China Construction Bank about teaming up in corporate and investment banking.

Johnson and Johnson (USD 67.76 ; 1.54% ; JNJ ; JNJ.N)

The same day, Johnson & Johnson may report 4Q/Dec EPS of $0.79 ($0.73 a year ago) on a revenue of $13.68bln ($12.6bln). Last Friday, the group's Ortho-McNeil Pharmaceutical unit lost an appeals court bid to block Caraco Pharmaceutical Laboratories from selling a generic version of the painkiller Ultracet. In other news, the stock was added to Goldman Sachs' 'conviction buy list'.

ConocoPhillips (USD 63.95 ; 3.45% ; COP ; COP.N)

On Wednesday, ConocoPhillips delivers its quarterly earnings. The market expects 4Q/Dec EPS of $1.98 ($2.68 a year ago). Marathon Oil Corporation and ConocoPhillips announced on Friday that the companies have jointly filed for a 2Y extension of the Kenai Liquefied Natural Gas facility's export licence with the US Department of Energy. The current license ends March 31 2009 and this application would extend the export licence to March 31 2011.

Microsoft (USD 31.11 ; 1.34% ; MSFT ; MSFT.O)

Thursday, Microsoft is scheduled to announce 2Q results. The group may report EPS of $0.23 ($0.33 a year ago) on a revenue of $12.07bln ($11.84bln). The holiday shopping season turned out to be a good one for the Co as indicated by preliminary PC and Xbox 360 sales figures. With Vista, MSFT is starting a significant multi-year, multi-product cycle that should drive accelerating revenues and even better earnings growth, thanks to margin expansion and continued buybacks.

Nokia (EUR 15.5 ; 3.2% ; NOK1V ; NOK1V.HE)

Finally, Nokia is expected to deliver on Thursday its 4Q/Dec and FY results. Last year, 4Q net income reached E1.073bln with sales of E10.33bln and FY net income reached E3.62bln with sales of E34.19bln. The market expects the group to say 4Q profit rose to E1.112bln. Sales probably rose 12% to E11.564.