US stocks mixed, Europe up

MARKET OUTLOOK

- US: US markets were mixed last week as the Dow Jones rose while the S&P 500 fell. A better than expected employment report helped mitigate earlier losses. Oil prices remained under pressure. Stocks from the auto and real estate sectors rose. Watch tomorrow's February retail sales data and earnings from Wall Street firms during the week. Technically, US markets remain well oriented for now but monitor last week's lows for a possible reversal.

- EUROPE: European markets rose last week, driven by strong gains in the telecom and health care sectors. Merger and acquisition news continue to support the market with liquidity remaining strong. FY 2005 earnings reports will be numerous and banking stocks speculative after last week rumours Citigroup could be considering France's Societe Generale as its next target and a possible tie between Capitalia and Banca Intesa. Technically, European markets should keep their upside momentum but could turn down should Wall Street show some weakness.

COMPANY PREVIEW

Goldman Sachs (USD 141.53 ; -3.06% ; GS ; GS.N)

On Tuesday Goldman Sachs scheduled to release 1Q earnings. 1Q EPS is expected to have risen to $3.29 from $2.94 same time last year. The group was left out last week from China's biggest ever IPO which may raise over $10bln for state-owned Industrial & Commercial Bank as it was already arranging the country's third biggest share sale.

Lehman Brothers Holdings (USD 142.14 ; -3.77% ; LEH ; LEH.N)

On Wednesday Lehman Brothers reports its 1Q earnings. EPS expected to rise to $3.16 from $2.91. The bank recently won EU approval to purchase H.J.Heinz seafood unit for $507m, which is now scheduled to be completed by the end of the month.

Allianz (EUR 131.73 ; -1.23% ; ALV ; ALVG.DE)

On Thursday Allianz reports its FY results. A group of Allianz shareholders is taking legal action to oppose a restructuring plan following the purchase of the remainder of Riunione Adriatica.

Gaz de France (EUR 29.06 ; 0.21% ; GAZ ; GAZ.PA)

Then, Gaz de France is expected to report FY results. Net income seen coming in at E1.59bln. The market will be looking for the latest developments in its proposed merger with Suez, as well as any possible counter response by Enel or the European Union.

Bear Stearns Companies (USD 132.15 ; -2.33% ; BSC ; BSC.N)

And finally on the same day Bear Stearns scheduled to release its 1Q results. The market is looking for an EPS of $2.95 compared to $2.64 same time last year.