| Nokia and eBay reported surprisingly strong quarterly results, while Ford posted hefty fourth-quarter losses. Also in focus: existing home sales Stocks were set to open mixed Thursday, index futures indicated, as surprisingly strong earnings news in tech countered some lackluster blue-chip results. Technican analysts see a pullback emerging soon, largely depending on the strength of tech stocks, says Standard&Poor's Equity Research.
On Wednesday, the Dow Jones industrial average rose 87.89 points, or 0.7%, to 12,621.69, a new closing record. The broader Standard&Poor's 500 index added 12.14 points, or 0.85%, to 1,440.13. The tech-heavy Nasdaq composite climbed 34.87 points, or 1.43%, to 2,466.28, its biggest gain since Dec. 4.
Investors were slated to get an update on the housing market Thursday. Existing home sales are seen falling to 6.25 million in December from 6.277 million in November, says Action Economics.
In other economic reports, initial jobless claims climbed 36,000 to 325,000 in the week ended Jan. 20, from a downwardly revised 289,000 a week earlier.
Among Thursday's stocks in the news, eBay (EBAY) was sharply higher in pre-market trading after the online auctioneer raised its 2007 earnings guidance. Piper Jaffray upgraded the stock from underperform to market perform.
Shares of Nokia (NOK) also sported solid gains after the cell phone maker reported a 19% increase in fourth-quarter profits.
Telecommunications giant AT&T (T) was higher after the company posted a 17% rise in fourth-quarter earnings, topping analyst estimates.
On the downside, Ford (F) was lower after the automaker reported a wider-than-expected fourth-quarter loss and announced it would cut its production for the current quarer.
Rival automaker General Motors (GM) was slightly higher after the company said it was recalling nearly 100,000 cars to add padding to the passenger-side visor area.
Fellow Dow component Boeing (BA) was little changed amid reports the aerospace company will not use a wireless entertainment network for its 787 "Dreamliner" due to plane weight and technical issues.
In the energy markets, March West Texas Intermediate crude oil futures rose 11 cents to $55.48 a barrel in electronic trading.
European markets were trading lower. The FTSE-100 index in London fell 13.6 points, or 0.22%, to 6,301.2. Germany's DAX index edged down 0.22 points, or less than 0.01%, to 6,748.15. In Paris, the CAC 40 index shed 20.44 points, or 0.36%, to 5,617.64.
Asian markets ended lower. In Japan, the Nikkei 225 index lost 49.1 points, or 0.28%, to 17,458.3. In Hong Kong, the Hang Seng index slid 151.22 points, or 0.73%, to 20,669.83. Korea's Kospi index edged down 0.7 points, or 0.05%, to 1,382.36.
Treasury Market
Treasury yields ticked higher ahead of the existing home sales data. The 10-year note slipped in price to 98-14/32 for a yield of 4.82%, while the 30-year bond fell to 93-14/32 for a yield of 4.93%. The market showed little reaction to the rise in weekly jobless claims, says Action Economics. |
