New historical high for Dow Jones

MARKET OUTLOOK

- US: US markets had a bullish week, helped by optimism about M and A activity, which will help offset slower earnings growth, and a reassuring speech from Federal Reserve Chairman Ben Bernanke on inflation - the Dow Jones reaching a new historical level. The automobile sector had a huge week, gaining almost 6%, and stocks from basic resources, technology, healthcare and food and beverage outperformed the market, while chemicals and oil and gas sectors lost ground. Technically, the current rise should continue as daily indicators are bullish, calling for further advances.

- EUROPE: After a bad Monday, European markets rebounded and closed the week on a positive note, even if some indexes, the Ibex and AEX, remained mixed. Stocks from materials, transportation, cons. durables, healthcare equipment and banks clearly led the advance, while energy had the only real but relative decline. Technically, the current rally should let room for further advances in forthcoming days.

COMPANY PREVIEW

Wal-Mart (USD 48.48 ; 1.06% ; WMT ; WMT.N)

Wal-Mart publishes its results on Tuesday. The street sees 4Q/Jan EPS of $0.89 ($0.84 a year ago) on a revenue of $98.5bln ($89.27bln). The group is expected to say profit rose on the smallest sales increase in a year as the company reduced prices during the holidays to attract customers.

Hewlett Packard (USD 42.77 ; 1.28% ; HPQ ; HPQ.N)

Still on Tuesday, Hewlett-Packard delivers its quarterly earnings. The market expects 1Q/Jan EPS of $0.63 ($0.48 a year ago) on a revenue of $24.24bln ($22.66bln). The group should post strong 4Q results and analysts will focus on HPQ's overall revenue, printer division performance, PC performance, overall small office/home office product mix, new products introduced, restructuring progress/cost reduction success, overall marketing strategy, sector position by product, and margins.

Barclays (GBp 781.5 ; 1.1% ; BARC ; BARC.L)

The same day, Barclays is scheduled to announce 4Q and FY results. Last year, FY net income reached £3.447bln and pre-tax profit £5.28bln. The group said on February 18 that it may consider the sale of Monument, the credit card brand targeting poorer consumers, according to the Sunday Telegraph.

EDF (EUR 58.1 ; 4.5% ; EDF ; EDF.PA)

On Wednesday, EDF will report its 4Q and FY results. Last year, net income rose to E3.2bln in the 12mths from E1.6bln a year earlier. EDF boosted sales in 2006 on higher prices. The group's sales rose 15% to E58.9bln as an increase in regulated power prices boosted revenue in the final quarter by 3.8%.

Lowe's Cos (USD 33.27 ; -0.45% ; LOW ; LOW.N)

Finally, Lowe's is expected to deliver on Friday its 4Q results. The group may report 4Q/Jan EPS of $0.37 ($0.44 a year ago) on a revenue of $10.7bln ($10.81bln). The group said last month that it plans to expand into Mexico, opening as many as five stores in 2009 as it tries to keep pace with Home Depot.