Stock futures mixed ahead of opening; Apple’s strong earnings help technology sector
By Stephen Bernard, APWednesday, April 21, 2010
Stock futures mixed ahead of opening
NEW YORK — Stock futures were mixed Wednesday, with Nasdaq futures rising after strong earnings from Apple boosted the technology industry.
Dow Jones industrial average and Standard & Poor’s 500 futures fell but pulled off their lows.
With few economic reports to go on, investors are focused on earnings. Better-than-expected results across many industries have helped push stocks higher.
Apple Inc.’s earnings easily topped expectations thanks to strong sales of iPhones. Apple was the latest in a string of technology companies to report improving profits as the economy recovers. Intel Corp. and IBM Corp. also posted stronger sales and profits.
Mike McGervey, president of McGervey Wealth Management in North Canton, Ohio, said the latest profit reports are so strong that stocks likely will keep climbing even though he thinks the market has run too far given the fragile economy.
“We have seen tremendous earnings,” he said. “Companies today really have demonstrated a will to survive and be profitable literally almost in any environment.”
Beyond earnings, investors also looked to Washington. A proposed tax on banks that could raise $90 billion over the next decade could be a drag on the financial industry and the broader market. The idea, first proposed by President Barack Obama in January, is gaining support in Congress and could be added to a bill overhauling financial regulation. Congress is working on revamping financial regulation.
Ahead of the opening bell, Nasdaq 100 index futures rose 9.25, or 0.5 percent, to 2,033.50. Dow Jones industrial average futures fell 11, or 0.1 percent, to 11,063, while Standard & Poor’s 500 index futures fell 1.00, or 0.1 percent, to 1,204.40.
Apple shares rose $14.40, or 5.9 percent, to $258.99 in electronic trading. The stock topped its previous record of $251.14 set Friday.
McDonald’s Corp. and the bank Morgan Stanley both reported earnings that topped expectations.
Major indexes advanced again Tuesday. It was the Dow’s eighth gain in the past nine days.
Goldman Sachs Group Inc. on Tuesday reported better-than-expected profit as well, but its shares dipped because of concerns around civil fraud charges the bank faces tied to its subprime mortgage securities business.
A rebound in oil prices after a nearly two-week slide helped energy stocks and the broader market as well.
Oil rose again Wednesday. Gold was also higher as the dollar was mixed against other major currencies.
Crude oil rose 8 cents to $83.93 per barrel in electronic trading on the New York Mercantile Exchange.
Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.78 percent from 3.80 percent late Tuesday.
Overseas, Britain’s FTSE 100 fell 0.9 percent, Germany’s DAX index fell 0.3 percent, and France’s CAC-40 dropped 0.3 percent. Japan’s Nikkei stock average rose 1.7 percent.
