Stocks not building on tech gains

[notiCIas]

Stocks not building on tech gains

Strong reports from IBM, Yahoo! not enough to lift futures ahead of other major earnings reports.

January 19, 2005: 6:32 AM EST



NEW YORK (CNN/Money) - U.S. stocks looked to open lower Wednesday, despite some strong tech earnings, as investors anxiously awaited more quarterly reports and some key economic readings.

Stock futures were lower for both the Standard & Poor's 500 and Nasdaq 100 following Tuesday's gains that gave U.S. markets their best day of the young year.

After the market close, IBM (Research) reported a better than expected gain in earnings, and said its outlook for 2005 sales were better than analysts' forecasts. IBM shares edged up 20 cents in after-hours trading to $95.10 following the report, but it fell slightly in European trading early Wednesday.

Internet search engine Yahoo! (Research) also reported stronger than expected results, which lifted its shares both after hours and in early European trading. But cell phone maker Motorola (Research) saw shares fall, despite beating forecasts with its earnings, as its earnings guidance was at or below the consensus forecast.

Earnings reports due early Wednesday include three Dow components -- General Motors (Research), Pfizer (Research) and JP Morgan Chase (Research).

In overseas markets, Asian markets were mixed, with Japan's Nikkei losing ground and Hong Kong's Hang Seng gaining. Major European markets were higher in early trading.

Economic reports include the December reading on inflation, housing starts and building permits and weekly jobless claims, due a day earlier than normal due to Thursday's presidential inauguration.

Economists surveyed by Briefing.com forecast that the consumer price index is expected to be flat in December after a 0.2 percent rise the previous month, while the so-called core-CPI, which excludes often volatile food and energy prices, is forecast to be up 0.2 percent, the same as in November.

Housing starts, which posted an unexpected sharp fall in November, are forecast to rebound to an annual pace of 1.9 million from 1.77 million in November.

And initial jobless claims are forecast to fall to 345,000 from 367,000 the previous week.

Bond prices were little changed, leaving the yield on the 10-year treasury at 4.18 percent. The dollar slipped slightly versus the euro and the yen.

Oil prices retreated slightly after Tuesday's rally, ahead of Wednesday's inventory report. The light crude contract fell 12 cents to $48.26 a barrel in electronic trading, while Brent crude lost 32 cents to $45.07.