Dell could drain stocks
Weak revenue, sales target could spook those counting on No. 1 PC maker to show strength.
February 11, 2005: 6:10 AM EST
NEW YORK (CNN/Money) - Disappointment in the results and outlook from leading personal computer maker Dell could hit stocks, particularly in the tech sector, when markets open Friday.
U.S. stock futures were slightly higher. But, when fair value is considered, futures indicate a lower opening for stocks following the after-hours report from Dell (Research).
The company's fourth-quarter earnings and first quarter profit guidance was better than forecasts, but revenue missed the consensus estimate and the sales guidance also disappointed.
Shares of Dell lost $1.33, or 3 percent, to $40.24 in after-hours trading.
Major markets in Asia were closed for holidays Friday. Major European markets were higher in early trading. U.S. stocks closed Thursday higher, with blue chips outperforming the tech sector.
Oil prices, which rose Thursday on a warning from the International Energy Agency of faster-than-expected increase in demand and disappointing world production growth, continued to edge higher in early trading Friday.
The March light crude contract gained 9 cents to $47.19 a barrel in electronic trading, while Brent crude rose 21 cents to $44.69.
The yield on the 10-year Treasury rose to 4.07 percent from the 4.05 percent level at the new issue's pricing Thursday. The dollar was little changed against the euro and yen.