Record high reached by Dow Jones

MARKET OUTLOOK

- US: US markets jumped week-on-week driven by better than expected earnings and economic reports. The Dow Jones set a new record high while the S&P closed at its highest since September 2000 and the Nasdaq Composite since February 2001. Except for energy and software stocks, all sectors ended in the green, led by the semi-conductors, pharmaceuticals and banks. From a technical point of view, the current rise should continue as daily indicators are bullish and do not show any reversal sign.

- EUROPE: European markets ended the week sharply up, helped by merger and acquisition rumours among banks. Stocks from the tech, health care outperformed the market week-on-week while oil and gas and basic resources were among the worst performers. Technically, as all major European indices set a new year high, a further rise is favoured.

COMPANY PREVIEW

AT&T (USD 39.87 ; 2.65% ; T ; T.N)

On Tuesday AT&T is scheduled to deliver its 1Q EPS of $0.61 ($0.52 a year ago) on revenue of $29.42bln ($15.83bln). Last week the Co announced that it might renew its bid for a one third stake in Telecom Italia's controlling shareholder, Olympia, if the Italian government stopped its inference in this deal. The US Co plans to spend $750m to enhance its global business services.

Glaxosmithkline (GBp 1488 ; 0.47% ; GSK ; GSK.L)

Wednesday, GlaxosmithKline is seen reporting 1Q net income of £1.46bln (£1.502bln a year earlier) on revenue of £5.87bln (£5.81bln). The Co has recently won regulatory permission to sell the asthma inhaler Advair and the clot-busting drug Arixtra in Japan. In other news, Ranbaxy Laboratories will develop a drug for respiratory diseases in alliance with GlaxoSmithKline. The Co is also in talks with the World Health Organisation over a plan for a subsidised mass avian flu vaccination programme.

Microsoft (USD 29.02 ; 1.43% ; MSFT ; MSFT.O)

Microsoft will release its 3Q Mar results on Thursday. EPS is seen at $0.45 ($0.32 a prior year) on revenue of $13.8bln ($10.9bln). On April 19, the Co announced that it had entered into a broad patent cross-licensing agreement with Samsung Electronics. The Cos expect the agreement to accelerate their respective product development. Microsoft has actively sought patent agreements with different Cos to build bridges with an array of consumer electronics, telecommunications, computer hardware, Linux and UNIX platform providers.

Siemens (EUR 90.35 ; 2.67% ; SIE ; SIEGn.DE)

Still on Thursday, Siemens is scheduled to publish 2Q Mar net income of E1.104bln (E887m in 2Q/06) on revenue of E20.4bln (E21.5bln). Last week the Co won an order to supply 30 wind turbines to an offshore power project managed by Dong Energy. The group also nominated audit committee chief Gerhard Cromme as Chairman after Heinrich von Pierer resigned following a bribery scandal. Moreover, Siemens will take part in the tender this year to buy a 25% stake in the Russian machine maker, OAO Power Machines, and therefore increase its 25% interest to a controlling holding.

Exxon Mobil (USD 79.76 ; 3.04% ; XOM ; XOM.N)

Finally, on Friday, Exxon Mobil may deliver 1Q Mar EPS of $1.49 ($1.37 a year ago) on revenue of $100bln ($78.65bln). The Co may consider a bid for Devon Energy. The acquisition makes sense because Devon has large properties and is a leader in deepwater production in the Gulf of Mexico, where Exxon has 'little foothold' (Business Week).