L'Oreal is expected to report after the market close adjusted profit of appx. E2.1bln on sales of E17.6bln. Operating profit is seen at E2.7bln, down YoY, hurt by the consolidation of YSL Beaute, increased investments and currency rates. 4Q organic growth sales is expected to be slower in all regions. Market will focus on guidance concerning sales and margins for 2009. Technically, the price remains under pressure below E57.20 with another test of the E50 support area in sight.

On Tuesday, Daimler may report a 4Q loss. In January, Fitch Ratings cut the carmaker's debt rating. According to the notation agency, Daimler's earnings and cash flow should be weaker than predicted by the company for this year and the next one. European car sales dropped 27% in January, a 20-year low. The stock has been trading in a E28-E20 trading range for several months. In the short-term, the stock is expected to test its the upper end of the range ahead of another leg down towards 20.

The same day, Wal-Mart may post 4Q/Jan EPS of $0.77 vs $1.04 a year earlier. Last week the Commerce Department reported that US retail sales unexpectedly rose 1% in January, reversing a six month decline. That was the biggest increase in 14 months. The figures were better than the 0.8% decline targeted by economists. In other news, Wal-Mart announced on Feb.10 that it would cut 700-800 jobs in home office. From a technical point of view, the downside breakout of the $50 former support area calls for further weakness with $44.50 as next down target.

On Thursday, Nestle is expected to report FY net income of SF11bln (excluding an exceptional gain linked to its disposal of a 25% stake in Alcon to Novartis), on sales of SF111bln. Nestle has an option to sell its remaining 52% stake between January 2010 and July 2011 to the Swiss drugmaker. From a technical point of view, the downside breakout of the SF39.5 former support area triggered a bearish acceleration with 35 in sight.

The sale day, Sprint Nextel may release a 4Q LPS of $0.04 vs EPS of $0.21 a year earlier on sales of $8.54bln vs $9.85 a year ago. The company announced in January it will take actions in the first quarter to reduce internal and external labor costs by appx. $1.2bln on an annualized basis. The actions include the elimination of appx. 8,000 positions within the company, which is expected to be largely completed by March 31. Sprint expects to recognize a charge in excess of $300m in the 1Q 09 related to this measure. Technically, the stock jumped 12% Friday in above average volume. Expect a test of the strong $3 resistance and possibly $3.5 on a breakout. Alternatively, the penetration of $2.4 would call for $2.00.