Stocks head for higher open after earnings from Oracle, Bear Stearns
NEW YORK -- Wall Street was poised to open higher Thursday, with investors encouraged about technology shares following strong earnings at Oracle but still uncertain about the financial sector after Bear Stearns posted its first ever quarterly loss.
Late Wednesday, Oracle Corp. said its profit in the most recent quarter jumped 35 percent, well above analyst estimates, thanks to higher sales of licenses for new products.
But Bear Stearns Cos. said that in the fourth quarter, turmoil in the credit market reduced the investment bank's portfolio by $1.2 billion, leading to a hefty loss. Bear Stearns -- now facing a lawsuit by Barclays PLC, which lost money over the summer when two of Bear Stearns' hedge funds collapsed -- has made bad investments in subprime mortgages like its Wall Street peers.
Investors were also monitoring economic data including the Commerce Department's final reading on third-quarter gross domestic product, and the Labor Department's weekly data on claims for unemployment benefits -- a report that is closely watched, but often volatile from week to week.
Dow Jones industrial futures rose 37, or 0.28 percent, to 13,335, while Standard & Poor's 500 index futures rose 4.10, or 0.28 percent, to 1,469.00. Nasdaq 100 futures rose 12.50, or 0.61 percent, to 2,069.75.
In other earnings data, ConAgra Foods Inc. said its quarterly profit rose 15 percent, helped by strong performance from its commodities trading group.
FedEx Corp. reported a 6 percent decline in quarterly earnings, hurt by high fuel costs and the U.S. economic slowdown. The company also issued an outlook that fell below expectations.
On Wednesday, stocks finished mixed after a volatile trading session as Wall Street grappled with a ratings downgrade on a bond insurer, a $9.4 billion writedown at Morgan Stanley and persistent worries about the economy.
The dollar rose against other most major currencies Thursday, except the yen. Gold prices fell.
Light, sweet crude rose 46 cents to $91.70 a barrel in premarket trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average rose 0.01 percent, and Hong Kong's Hang Seng index slipped 0.05 percent. Britain's FTSE 100 rose 0.54 percent, Germany's DAX index rose 0.48 percent and France's CAC-40 rose 0.48 percent.