Record highs for Dow Jones and S&P500

MARKET OUTLOOK

- US: US markets closed up week-on-week helped by better than expected economic data. Corporate activity was low. Investors were boosted on Friday by a better than expected September employment report (110,000 jobs created versus 100,000 expected) and revised August data (89,000 created versus 4,000 lost). Stocks from the banks, retailing and real estate sectors climbed most. Shares in food and staples retail. and energy sectors posted week-on-week declines. The Dow Jones and S&P 500 reached new record highs on Friday. From a technical point of view, the current upside momentum can continue as no signs of consolidation are shaping. The Q3 earnings season kicks off this week so expect plenty of news about the state of the economy in the weeks ahead.

- EUROPE: European markets were also up week-on-week. The euro consolidated most of the week before rebounding on Friday. Stocks in the automobiles and parts, travel and leisure and banks sectors gained most, whereas shares in the telecommunications, oil and gas and technology sectors were under pressure. This week the continuation of the bullish mood should prevail but markets are likely to follow the major moves of Wall Street.

COMPANY PREVIEW

Alcoa (USD 38.79 ; -0.84% ; AA ; AA.N)

On Tuesday Alcoa is expected to post Q3 EPS of $0.64 ($0.62 last year) on sales of $7.3bn ($7.63bn). Last week the group announced that it expects charges of approx. $845m in Q3 related to the sale of its packaging business and plans to restructure other units. The charges include $600m for the sale of the units and over $195m to improve earnings at the electrical and electronic-solutions business.

Vedanta Resources (GBp 2180 ; 7.39% ; VED ; VED.L)

Wednesday, Vedanta is scheduled to announce H1 net income of 264.5m UK pounds on revenues of 694.6m UK pounds. At the end of August, the Co offered $388m for an additional 20% interest in Sesa Goa. Still in August, Vedanta Resources agreed to sell an 84% in Sterlite Gold to GeoProMining for $86m. Separately, the Co's subsidiary Bharat Aluminium signed an accord with a provincial government in India to help build an aluminium smelter plant worth $2bn.

Monsanto (USD 86.93 ; 1.39% ; MON ; MON.N)

In the US, Monsanto is seen reporting its Q4 earnings on the same day. Q4 LPS seen at $0.16 (LPS $0.2 a year earlier) on sales of $1.61bn ($1.39bn last year). In September, Monsanto agreed to acquire Devgen's 1,045,400 shares at E17.22. About two months ago, Monsanto agreed to buy Agroeste Sementes for $100m to boost its business in Brazil.

Investor (B) (SEK 174 ; 5.14% ; INVEB ; INVEb.ST)

Investor AB may present Q3 results on Thursday. Last year net income of reached SK9.67bn. On July 11, the Co reported its Q2 assets value increased 12% to SK182.6bn as holdings in Scania and ABB appreciated. In July, the Co considered a bid for Ford Motor's Volvo Cars, but Ford stated that its subsidiary was not for sale.

General Electric (USD 41.77 ; 0.89% ; GE ; GE.N)

Finally, on Friday, General Electric could deliver Q3 EPS of $0.55 ($0.49 last year) on sales of $42.78bn ($40.28bn a year ago). At the beginning of this month, the Co was considering cutting 1,400 jobs as it closed plants in the US and Brazil.