28/07/2003 15:49
Futures point to a higher start as investors await American Express earnings, digest Xerox report.
Stocks could start stronger Monday after four straight gaining weeks, as investors awaited quarterly results from American Express and some others.
Just before 7:15 a.m. ET, futures pointed to a slightly higher open for the major indexes.
American Express, the financial services provider, is expected to post income of 57 cents a share, up from 51 cents a year earlier, when it reports on the quarter during trading hours, according to a consensus of analysts surveyed by First Call.
Among U.S. stocks trading in Europe, shares of American Express (AXP: Research, Estimates) were more than 3 percent higher.
Meanwhile, troubled copier maker Xerox (XRX: Research, Estimates) posted earnings of 9 cents a share, down from 11 cents in the same period last year and missing Wall Street estimates of 13 cents a share, according to Reuters Research.
Other companies due to report results before the start of trading Monday include cereal maker Kellogg (K: Research, Estimates) and insurer SAFECO (SAFC: Research, Estimates).
After the close, companies scheduled for quarterly report cards include both the cellular (PCS: Research, Estimates) and long distance operations (FON: Research, Estimates) of Sprint.
Investors have been watching second-quarter earnings reports closely over the past few weeks for evidence of improving business conditions and signs of a better second-half ahead. But, some analysts said stocks are unlikely to see a sharp rise unless investors get more indications that an economic recovery is on its way from economic reports.
"For this market to really push on we need to see unemployment trends drop, so that the retail sector can be certain of making a contribution to the recovery of the U.S. economy," David Buik at Cantor Index, told Reuters.
Stocks rose Friday after better-than-expected reports on the manufacturing and housing sectors. The Dow Jones industrial average is coming off its fourth straight week of gains, managing a 1 percent advance after a 172-point gain Friday. The Nasdaq composite index also came through with a winning week, up 1.3 percent after climbing more than 29 points.
In other corporate news, Credit Suisse First Boston raised its rating on telecom service provider AT&T (T: Research, Estimates) to "outperform" from "neutral," citing the company's better-than-expected second-quarter report. Shares were 2 percent higher in European trading.
Qualcomm (QCOM: Research, Estimates) and Texas Instruments (TXN: Research, Estimates) could have an impact on trading Monday. Qualcomm said late Friday it was filing a lawsuit against TI over an agreement that covers the companies' patents. Chip maker Texas Instruments said Monday morning it would vigorously contest the lawsuit.
Asian-Pacific stocks posted strong gains Monday, with Tokyo's Nikkei up 2 percent. Most European markets saw advances at midday. (Check the latest on world markets)
Treasury prices fell, sending the 10-year note yield up to 4.22 percent from 4.17 percent late Friday. The dollar rallied against the yen, and was slightly higher versus the euro.
Brent oil futures retreated 55 cents to $27.63 a barrel in London, where gold was lower in early trading.
Stocks could start stronger Monday after four straight gaining weeks, as investors awaited quarterly results from American Express and some others.
Just before 7:15 a.m. ET, futures pointed to a slightly higher open for the major indexes.
American Express, the financial services provider, is expected to post income of 57 cents a share, up from 51 cents a year earlier, when it reports on the quarter during trading hours, according to a consensus of analysts surveyed by First Call.
Among U.S. stocks trading in Europe, shares of American Express (AXP: Research, Estimates) were more than 3 percent higher.
Meanwhile, troubled copier maker Xerox (XRX: Research, Estimates) posted earnings of 9 cents a share, down from 11 cents in the same period last year and missing Wall Street estimates of 13 cents a share, according to Reuters Research.
Other companies due to report results before the start of trading Monday include cereal maker Kellogg (K: Research, Estimates) and insurer SAFECO (SAFC: Research, Estimates).
After the close, companies scheduled for quarterly report cards include both the cellular (PCS: Research, Estimates) and long distance operations (FON: Research, Estimates) of Sprint.
Investors have been watching second-quarter earnings reports closely over the past few weeks for evidence of improving business conditions and signs of a better second-half ahead. But, some analysts said stocks are unlikely to see a sharp rise unless investors get more indications that an economic recovery is on its way from economic reports.
"For this market to really push on we need to see unemployment trends drop, so that the retail sector can be certain of making a contribution to the recovery of the U.S. economy," David Buik at Cantor Index, told Reuters.
Stocks rose Friday after better-than-expected reports on the manufacturing and housing sectors. The Dow Jones industrial average is coming off its fourth straight week of gains, managing a 1 percent advance after a 172-point gain Friday. The Nasdaq composite index also came through with a winning week, up 1.3 percent after climbing more than 29 points.
In other corporate news, Credit Suisse First Boston raised its rating on telecom service provider AT&T (T: Research, Estimates) to "outperform" from "neutral," citing the company's better-than-expected second-quarter report. Shares were 2 percent higher in European trading.
Qualcomm (QCOM: Research, Estimates) and Texas Instruments (TXN: Research, Estimates) could have an impact on trading Monday. Qualcomm said late Friday it was filing a lawsuit against TI over an agreement that covers the companies' patents. Chip maker Texas Instruments said Monday morning it would vigorously contest the lawsuit.
Asian-Pacific stocks posted strong gains Monday, with Tokyo's Nikkei up 2 percent. Most European markets saw advances at midday. (Check the latest on world markets)
Treasury prices fell, sending the 10-year note yield up to 4.22 percent from 4.17 percent late Friday. The dollar rallied against the yen, and was slightly higher versus the euro.
Brent oil futures retreated 55 cents to $27.63 a barrel in London, where gold was lower in early trading.
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