Stocks poised to open higher after HP joins other techs upping outlook.
February 20, 2004: 6:30 AM EST
NEW YORK (CNN/Money) - U.S. markets are poised to move higher Friday, savoring optimism on the tech front and anticipating favorable inflation news.
Early morning futures pointed to a higher open. S&P and Nasdaq futures both were trading a few points into positive territory. Major U.S. markets all closed slightly lower Thursday, the fourth down day in the last five, with most of the decline coming in the last half hour of trading. (For more on Thursday's market action, click on the chart).
Economic reports due Friday include the latest reading on inflation. The consumer price index is expected to show a 0.3 percent gain for January after only a 0.2 percent gain in December. The so-called core-CPI, which excludes the volatile food and energy prices, is expected to show only a 0.1 percent gain, the same as December's rise. The lack of inflationary pressure has allowed the Federal Reserve to keep interest rates low despite other measures showing strong economic growth.
Among company news investors will be weighing Friday is raised earnings guidance from Hewlett-Packard Co. (HPQ: Research, Estimates). The world's top manufacturer of personal computers met first quarter earnings guidance, but said improving demand for technology products and services led it to raise its second quarter outlook. It is the third major tech company in the last week to give a strong outlook, following comments from competitor Dell Computer and chip equipment firm Applied Materials. Still shares of Hewlett-Packard, a component of the Dow Jones industrial average, fell in after-hours trading Friday following the report.
Federal Reserve Chairman Alan Greenspan will be giving a speech Friday to the Greater Omaha Chamber of Commerce.
Overseas, stocks ended mostly lower in Asia's Friday trading, while in Europe London's FTSE index hit a 19-month high in early trading..
Treasury bond prices edged lower after the jobless claims report, pushing the yield on the 10-year note up to 4.05 percent from 4.04 percent late Thursday. Bond prices and yields move in opposite directions.
The dollar edged higher against the euro and the yen, while oil prices rose in London trading.
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