Futures look to mixed open after IBM and Nokia post weaker-than-expected earnings reports.
April 16, 2004: 8:05 AM EDT
NEW YORK (CNN/Money) - U.S. stocks were on track for a mixed open after disappointing earnings from IBM and mobile phone equipment manufacturer Nokia.
Both companies reported a strong spending outlook in their respective sectors, and futures were higher earlier in the morning immediately after Nokia's report. But Nasdaq futures turned lower and S&P futures came off their highs.
For details of Thursday's session, click above
Before markets open, investors will also get reports on housing and industrial production, and the latest reading on consumer confidence is due early in the trading day.
Among U.S. stocks trading in Europe, IBM (IBM: Research, Estimates) was down more than 2 percent after reporting weaker-than-expected profit margins in its services operations after the market close Thursday. But the company said it saw signs of increased technology spending by businesses, and it reported revenue that was better than expected.
Nokia (NOK: Research, Estimates) shares fell 3.4 percent in Europe after the companywarned about its second quarter results and said it had endured a disappointing first-quarter loss in market share. But it said the market for wireless phones and networks continues to show signs of improvement.
The Nasdaq composite index is coming off a 1.1 percent decline Thursday amid continuing concern about interest rates and global instability; it would take about a 51-point gain Friday for the index to finish in positive territory this week. But the Dow Jones industrial average managed an increase of 0.2 percent and is still down 44 1/2 points going into the week's final day. (See chart for Thursday's results)
Asian-Pacific stocks were mixed Friday, with Tokyo's Nikkei index up 0.2 percent. European markets rose in early trading. (Check the latest on world markets)
Treasury prices advanced in early trading, sending the 10-year note yield down to 4.38 percent from 4.40 late Thursday. The dollar gained against the euro and was little changed against the yen.
Brent oil futures slipped 6 cents to $33.76 a barrel in London, where gold lost ground.
Building permit and housing starts reports for March are both expected to show slight increases from February levels. The report on industrial production is expected to show a 0.3 percent rise in March after a 0.7 percent rise in February.
But reports released by the New York and Philadelphia Federal Reserve banks Thursday both showed the manufacturing sector posting strong gains in April after falling off in March, so the industrial production report may be discounted by investors.
The preliminary April reading on consumer confidence from the University of Michigan is due out just before 10 a.m. ET. Analysts surveyed by Briefing.com forecast it will be up to 97.0 from 95.8 in March.
In other corporate news, network computer maker Sun Microsystems (SUNW: Research, Estimates) reported afirst quarter loss that was slightly larger than analyst forecasts, while Dell Computer (DELL: Research, Estimates) passed Hewlett Packard (HPQ: Research, Estimates) as the No. 1 maker of personal computers in the first quarter, according to an industry report.
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