FTSE and Dax hit new year highs

MARKET OUTLOOK

- US: After a slight corrective beginning, US markets ended the week on a positive note, driven by merger and acquisition activity. Shares from transportation, semiconductors, pharma and bio and energy led the advance while stocks from real estate, telecom services and banks lost ground. Technically, Friday's race should continue as daily indicators are positive and almost all indexes have bounced on their MA-20.

- EUROPE: After a weak start, European markets also ended on a positive note, with the Dax and the FTSE reaching new year highs. Stocks from oil and gas, health care and banks led the advance while the retail, telecommunications, media and financial services sectors ended in the red. Technically, the bias should remain positive as all intraday charts are pleading for the end of the consolidation.

COMPANY PREVIEW

Johnson and Johnson (USD 62.35 ; 1.3% ; JNJ ; JNJ.N)

On Wednesday Johnson and Johnson is to deliver its 1Q Mar EPS of $1.05 ($0.99 a year ago) on a revenue of $14.53bln ($12.9bln). Last week, the Co recalled 4m bottles of plaque-detecting listerine for children due to discouraging testing results. In other news, the group will pay $11m to settle an antitrust lawsuit.

Nokia (EUR 17.55 ; 0.75% ; NOK1V ; NOK1V.HE)

Thursday, Nokia is expected to publish 1Q Mar earnings results. The market sees sales of E10.304bln (E9.507bln a year ago), while net income is expected to reach E979.3m (E1.048bln a year earlier). Last Friday, the group announced that its $20m offer to use Qualcomm's technology was refused. Nevertheless the Cos continue talks concerning a new licence agreement.

Bank of America (USD 50.42 ; -0.85% ; BAC ; BAC.N)

Still on Thursday, the Bank of America is seen reporting 1Q Mar EPS of $1.16 ($1.13 a year ago) on sales of $17.3bln ($27.04bln). Last Wednesday, Bank of America, together with Citigroup, announced that they will offer $1bln in fixed-rate, to refinance the loans for borrowers facing the loss of their homes. In other news, Bank of America agreed to sell seven closed-end bond funds with $1.2bln in assets to Sun Life Financial.

SAP (EUR 35.39 ; 1.78% ; SAP ; SAPG.DE)

On Friday, SAP is scheduled to release 1Q Mar net income of E336.84m (E282m a year earlier) on a revenue of E2.226bln (E2.041bln). This year the group is looking to re-organise some personnel after the resignation of Shai Agassi, a top software architect. Moreover, SAP aims to transform the Co's international customer conference, Sapphire, to an industry forum that supports Cos in IT and business challenges.

Pfizer (USD 26.67 ; 3.21% ; PFE ; PFE.N)

Pfizer may announce its 1Q Mar results on the same day. The market sees EPS of $0.56 ($0.61 a year ago) on a revenue of $11.802bln ($12.660bln). In April, Novo Nordisk declared that it had cut the number of claims of Pfizer's patent infringements during the latter's developing of Exubera, an inhalable insulin product.