Better-than-expected earnings from Intel, Microsoft seen lifting U.S. markets at the open.
April 16, 2003: 5:43 AM EDT
By Mark M. Meinero, CNN/Money Staff Writer
NEW YORK (CNN/Money) - Intel and Microsoft, by virtue of their better-than-expected quarterly earnings reports, appear likely to send U.S. stocks -- and the Nasdaq in particular -- higher at the start of trading Wednesday.
At 5:30 a.m. ET, Nasdaq futures, taking fair value into account, were up about 2 percent. S&P futures also gained, but not as substantially.
Intel (INTC: Research, Estimates), the world's No. 1 maker of semiconductors, reported earnings late Tuesday that were above analysts' estimates and even with the year-earlier period. It also said it sees gross margins for 2003 in line with forecasts, although sales could be a little weaker than previously projected.
In before-hours trading on Instinet, Intel rose $1.02 to $18.15.
Microsoft (MSFT: Research, Estimates), the No. 1 maker of software, also posted a profit that exceeded expectations. The company's outlook was mixed, seeing its earnings for the fiscal year ending in June above expectations but warning that sales might be a bit below estimates.
Microsoft shares rose $1.15 to $25.76 in before-hours trading on Instinet.
Ford Motor and four Dow components top the list of earnings reports due before trading begins.
Ford (F: Research, Estimates) is expected to report first-quarter profit of 22 cents a share, compared with a loss of 6 cents a year earlier, according to a consensus of analysts surveyed by First Call. As was the case with GM Tuesday, the Ford report will be closely watched for signs of possible weakness for the rest of 2003.
Ford shares rose 2 percent among U.S. stocks trading in Europe Wednesday.
The four Dow components reporting include financial services provider J.P. Morgan Chase (JPM: Research, Estimates). It's expected to post earnings of 51 cents a share, down from 57 cents a year earlier. Shares were slightly higher in European trading.
Coca-Cola (KO: Research, Estimates), the soft drink maker, is forecast to report a profit of 37 cents a share, up from 34 cents a year earlier. Shares of Coke, which has said it won't provide earnings guidance, rose 1.7 percent in Europe
Caterpillar (CAT: Research, Estimates), the industrial equipment maker, is seen posting income of 25 cents a share, up from 23 cents a year earlier. The stock was up nearly 2 percent in Europe.
And then there's Altria (MO: Research, Estimates), the renamed Philip Morris, whose income is seen slipping to $1.06 a share from $1.04, as the tobacco company faces an increased litigation risk that has led to a cut in its debt rating.
Also reporting before the start of trading Wednesday are brokerage Merrill Lynch (MER: Research, Estimates), appliance maker Maytag (MYG: Research, Estimates) and plumbing fixture maker American Standard (ASD: Research, Estimates).
After the close, chipmaker Advanced Micro Devices (AMD: Research, Estimates) is among the companies slated to report results. AMD's quarterly loss is seen widening to 48 cents a share from 3 cents a year earlier. AMD shares rose 4 percent in European trading.
Other companies reporting after the close include Apple Computer (AAPL: Research, Estimates) and server maker Sun Microsystems (SUNW: Research, Estimates).
The Dow Jones industrial average is two-for-two on the bullish side this week after Tuesday's 0.6 percent gain. The Nasdaq composite has also risen two days in a row following a 0.4 percent advance (see chart for details).
Asian-Pacific stocks got a lift from the Microsoft and Intel results, with Tokyo's Nikkei index up 0.5 percent. European markets gained in early trading.
Treasury prices slid, sending the 10-year note yield up to 4 percent from 3.98 percent late Tuesday. The dollar gained against the yen, but was lower versus the euro.
Brent oil futures retreated 3 cents to $25.13 a barrel in London, where gold gained in early trading.
Before trading begins, the Consumer Price Index for March will be released. Economists surveyed by Briefing.com expect to see a 0.4 percent increase from February, with prices excluding food and energy up 0.2 percent.
The government also issues its March report on housing starts. Economists surveyed by Briefing.com expect to see a 4.8 percent rise from February to an annual rate of 1.7 million.
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
