LONDON (ShareCast) - After a succession of downbeat first quarter earnings statements, Wall Street finally got a trading update to cheer today as Wal-Mart’s sales figures came in ahead of expectations.

Wal-Mart, the world’s largest retailer, said strong grocery sales and demand for flat-panel televisions boosted sales, with revenue growth at stores open at least a year up 0.7% in March, prompting the company to raise its first-quarter profit projection.

Meanwhile warehouse-club chain Costco said March sales increased 11% in March, thanks largely to strong international demand. US-only sales rose 5%.

Across the markets the Dow Jones industrial average is up 80 at 12,607 and the S&P Composite is 8 points better at 1,362. The NASDAQ Composite advances 31 points to 2,353.

Financial stocks were still under the cosh. Lehman Brothers fell back after liquidating three of its investment funds with assets totalling $1bn because of “market disruptions”.

Oilfield services provider Halliburton was wanted after it was upgraded to “buy” from “neutral”' by Goldman Sachs, which has greater confidence in the company’s 2008 and 2009 profit estimates as a result of new rigs in the oil services industry and an increase in North American natural gas spending.

Yahoo! bounces higher on reports suggesting that a merger with the AOL unit of Time Warner is on the cards.. Yahoo also announced an advertising deal with Google, which could lead to a bigger partnership.

Other reports suggested that Yahoo suitor Microsoft in talks with News Corp regarding a joint bid approach.

Other tech stocks are going well, helped by a profits upgrade for Apple shares by JP Morgan. Printer maker Lexmark tops the list of blue-chip risers after Lehman Brothers increased its first quarter earnings per share estimates to $0.96 from $0.82, as the broker sees scope for increased profitability from the switch to a greater emphasis on laser printer sales rather than inkjets.

Chemical firm DuPont raised its earnings forecast early Thursday thanks to strong growth in its agricultural businesses.

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