Microsoft earnings could send U.S. stocks sharply higher when trading begins Friday.
Microsoft's better-than-expected earnings could be the focal point of a U.S. stock market rally when trading begins Friday.
Early Friday, futures pointed to a sharply higher open for the Nasdaq market, which includes the world's largest software maker. S&P futures were also higher.
Among U.S. stocks trading in Europe, Microsoft (MSFT: Research, Estimates) shares were 4 percent higher on the earnings news. The software maker earned 34 cents a share excluding special iteams, up from 27 cents on that basis in its fiscal third quarter, and better than the 29-cent-a-share forecast of analysts surveyed by earnings tracker First Call.
Microsoft also gave a sales and earnings forecast for its fourth quarter that topped current consensus estimates.
The report of strong PC sales in the Microsoft report also sparked after-hours gains for large tech stocks with significant exposure to that market, such as chipmaker Intel (INTC: Research, Estimates), personal computer maker Dell (DELL: Research, Estimates) and software provider Oracle (ORCL: Research, Estimates).
But one tech stock trading lower was online retailer Amazon.com (AMZN: Research, Estimates), which beat sales and earnings forecasts in first quarter, but reported narrower-than-expected profit margins and gave second quarter sales guidance below analysts' estiimates.
Some strong earnings reports helped lift the Dow Jones industrial average 1.4 percent Thursday; for the week to date, the blue-chip indicator is up more than 9 points. The Nasdaq composite index rallied 1.9 percent Thursday; it's 37 points ahead for the week entering the final session (see chart for details of Thursday's session).
Asian-Pacific stocks advanced Friday in step with Wall Street; Tokyo's Nikkei rose 1.2 percent to surpass the 12,000 level. European markets rallied in early trading. (Check the latest on world markets)
German automaker DaimlerChrysler (DCX: Research, Estimates) led the European rally there after its chief financial officer said the company is considering selling its stake in Japanese automaker Mitsubishi rather than taking part in a reorganization of that money-losing operation. Daimler owns a controlling 37 percent stake in Mitsubishi.
Treasury prices rose early Friday, sending the 10-year note yield down to 4.36 percent from 4.38 percent late Thursday. The dollar retreated against the yen and euro.
Brent oil futures climbed from earlier lows but was still off 2 cents to $33.37 a barrel in London, where gold advanced.
The only economic report due Friday is March durable goods orders. Analysts surveyed by Briefing.com forecast a 0.7 percent gain, down from the 2.5 percent gain in February. Several other readings of manufacturing have showed a rebound in manufacturing in April after a slump in March.
Other corporate news that could affect stocks includes word that health insurer Oxford Health Plans and rival WellChoice Inc. ended merger talks. Shares of Oxford (OHP: Research, Estimates) tumbled more than 10 percent in after-hours trading following the announcement.
Shares of independent movie studio Metro-Goldwyn-Mayer (MGM: Research, Estimates) could climb on a report in the Wall Street Journal that Time Warner (TWX: Research, Estimates) may be considering a bid for it. Rival Sony (SNE: Research, Estimates) was already reported eyeing a bid for MGM. The paper said Time Warner, parent of CNN/Money, is also considering bidding for the assets of bankrupt cable operator Adelphia and it may not be able to bid for both properties.
Microsoft's better-than-expected earnings could be the focal point of a U.S. stock market rally when trading begins Friday.
Early Friday, futures pointed to a sharply higher open for the Nasdaq market, which includes the world's largest software maker. S&P futures were also higher.
Among U.S. stocks trading in Europe, Microsoft (MSFT: Research, Estimates) shares were 4 percent higher on the earnings news. The software maker earned 34 cents a share excluding special iteams, up from 27 cents on that basis in its fiscal third quarter, and better than the 29-cent-a-share forecast of analysts surveyed by earnings tracker First Call.
Microsoft also gave a sales and earnings forecast for its fourth quarter that topped current consensus estimates.
The report of strong PC sales in the Microsoft report also sparked after-hours gains for large tech stocks with significant exposure to that market, such as chipmaker Intel (INTC: Research, Estimates), personal computer maker Dell (DELL: Research, Estimates) and software provider Oracle (ORCL: Research, Estimates).
But one tech stock trading lower was online retailer Amazon.com (AMZN: Research, Estimates), which beat sales and earnings forecasts in first quarter, but reported narrower-than-expected profit margins and gave second quarter sales guidance below analysts' estiimates.
Some strong earnings reports helped lift the Dow Jones industrial average 1.4 percent Thursday; for the week to date, the blue-chip indicator is up more than 9 points. The Nasdaq composite index rallied 1.9 percent Thursday; it's 37 points ahead for the week entering the final session (see chart for details of Thursday's session).
Asian-Pacific stocks advanced Friday in step with Wall Street; Tokyo's Nikkei rose 1.2 percent to surpass the 12,000 level. European markets rallied in early trading. (Check the latest on world markets)
German automaker DaimlerChrysler (DCX: Research, Estimates) led the European rally there after its chief financial officer said the company is considering selling its stake in Japanese automaker Mitsubishi rather than taking part in a reorganization of that money-losing operation. Daimler owns a controlling 37 percent stake in Mitsubishi.
Treasury prices rose early Friday, sending the 10-year note yield down to 4.36 percent from 4.38 percent late Thursday. The dollar retreated against the yen and euro.
Brent oil futures climbed from earlier lows but was still off 2 cents to $33.37 a barrel in London, where gold advanced.
The only economic report due Friday is March durable goods orders. Analysts surveyed by Briefing.com forecast a 0.7 percent gain, down from the 2.5 percent gain in February. Several other readings of manufacturing have showed a rebound in manufacturing in April after a slump in March.
Other corporate news that could affect stocks includes word that health insurer Oxford Health Plans and rival WellChoice Inc. ended merger talks. Shares of Oxford (OHP: Research, Estimates) tumbled more than 10 percent in after-hours trading following the announcement.
Shares of independent movie studio Metro-Goldwyn-Mayer (MGM: Research, Estimates) could climb on a report in the Wall Street Journal that Time Warner (TWX: Research, Estimates) may be considering a bid for it. Rival Sony (SNE: Research, Estimates) was already reported eyeing a bid for MGM. The paper said Time Warner, parent of CNN/Money, is also considering bidding for the assets of bankrupt cable operator Adelphia and it may not be able to bid for both properties.
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