Microsoft's disappointing prognosis for corporate spending could send markets lower at the open.
October 24, 2003: 5:31 AM EDT
NEW YORK (CNN/Money) - Investors appeared to be overlooking the positives in Microsoft's fiscal first-quarter earnings report, focusing instead on remarks that there's no sign of increased tech spending by business as they sent stock futures lower Friday.
At 5:30 a.m. ET, futures pointed to a lower open for the major indexes, particularly the tech-laden Nasdaq composite index.
Microsoft (MSFT: Research, Estimates), the No. 1 maker of personal computer software, reported fiscal first-quarter earnings Thursday that surpassed analysts' forecasts. But it also said it doesn't see any sign of renewed corporate spending for its products, and that has sent some investors fleeing overnight.
Microsoft shares fell $1.29 to $27.62 in Instinet trading early Friday.
For details of Thursday's mixed session, click above
The Nasdaq lost 0.7 percent Thursday as some weak tech sector results poisoned the market; entering the week's final session, the composite index is down nearly 27 points. The Dow Jones industrial average managed a measly 0.2 percent gain, but it needs to add nearly 109 points to finish up for the week (see chart for details of Thursday's session).
Asian-Pacific stocks ended mostly lower, but Tokyo's Nikkei index managed a microscopic gain as it came off Thursday's 5 percent drubbing. European markets were mixed in early trading. (Check the latest on world markets)
Treasury prices rose in early trading, sending the 10-year note yield down to 4.29 percent from 4.31 percent late Thursday. The dollar gained slightly against the yen and euro.
Brent oil futures climbed 15 cents to $28.78 a barrel in London, where gold was slightly higher.
Among the stocks in the news Friday were AT&T and BellSouth. The Wall Street Journal reported that the two telecoms have resumed merger talks a few months after discussions ended. The paper said that a deal would have regional carrier BellSouth (BLS: Research, Estimates) acquiring long-distance provider AT&T (T: Research, Estimates), retaining the AT&T name.
Among U.S. stocks trading in Europe, AT&T shares were 3 percent higher; BellSouth closed Thursday at $25.92, up 92 cents.
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