Thursday, April 23, 2009

Wall Street Poised For A Strong Start on Apple, Ebay Earnings

. Thursday, April 23, 2009

By stockOzone team

US stock futures gained on Thursday as stronger quarterly earnings from Apple and Ebay boosted investor sentiment. At 8:20 am ET, Standard & Poor's 500 Index futures advanced 9.10 points to 846. Dow Jones Industrial Average futures increased 62 points to 7878. Nasdaq Composite Index futures gained 18.50 points to 1342.

A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits increased by 27,000 to 640,000 in the week ending April 18, matching consensus extimates. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased by 4,250 to 646,750. Continuing claims for the week ending April 11 jumped 930,000 to a record 6.14 million.

Late on Wednesday, iPhone maker Apple (NASDAQ: AAPL) reported that its fiscal second quarter net income rose to $1.2 billion, or $1.33 per share, from $1 billion, or $1.16 a share, in the year. Revenue increased 9% to $8.16 billion for the quarter.

Ebay (NASDAQ: EBAY) too reported first-quarter profit that exceeded Wall Street estimates. fell to $357 million, or 28 cents a share, from $460 million, or 34 cents a share, in the year ago quarter. On an adjusted basis, earnings for the quarter were 39 cents a share. The online auctioneer said that the revenue for the period ended in March fell to $2.02 billion from $2.19 billion.

Early on Thursday, CIT Group Inc. (NYSE: CIT) said that its first quarter loss grew to $438.1 million, or $1.30 a share, compared with a year-earlier net loss of $238.7 million, or $1.35 a share.

EMC Corp. (NYSE: EMC) said first-quarter net income fell to $194.1 million, or 10 cents a share, from $251.7 million, or 12 cents a share, in the same period a year ago. Revenue dropped to $3.15 billion from $3.47 billion.

United Parcel Service Inc. (NYSE: UPS) announced that first-quarter net income fell 56% to $401 million, or 40 cents a share from $906 million, or 87 cents a share in the year earlier quarter. On an adjusted basis, net income totaled 52 cents a share. Quarterly revenue declined 13.7% to $10.9 billion.

Software giant Microsoft Corp (NASDAQ: MSFT) and online retailer Inc (NASDAQ: AMZN) are scheduled to report after the market close on Thursday.

Meanwhile, wireless technology giant Qualcomm delayed the release of its quarterly results on Wednesday, because it is in "advanced" settlement talks with Broadcom over a long-running dispute over patents and royalties.

European stocks advanced in afternoon trade. At 13:18 London Time, UK FTSE climbed 38.89 points or 0.96% to 4,069.55.The German Dax and French CAC increased 0.01% and 0.82% respectively.

Asian stocks finished higher. The Nikkei 225 rose 119.71 points or 1.37% to 8,847.01. The Hang Seng index of Hong Kong jumped 336.01 points or 2.26% to 15,214.46.

NYMEX Crude oil for June delivery climbed 8 cents to $48.63 a barrel

Disclosure: Author does not own any of the stocks discussed here.

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