LONDON (Thomson Financial) - Wall Street is looking at a flat-to-higher open as strong quarterly results from software giant Microsoft are tempered by concern over the impact on economic growth of a fresh spike in oil prices.
According to spread bettors IG Index, the Dow Jones Industrial Average is expected to open up 18 points at 13,690. Separately, S&P 500 futures were off 0.80 point at 1,524.30 while Nasdaq 100 futures gained 4.75 points to 2,198.
Yesterday, stocks ended slightly lower on mixed earnings reports, higher oil prices and data that did little to ease concerns about the current state of the economy.
The University of Michigan is expected to report later this morning that consumer sentiment weakened in October.
A final Consumer Price Index reading of 82 is expected, down from an initial reading of 83.4, as the weak housing market and this summer's credit crunch continue to weigh, according to Thomson's IFR Markets.
A surge in oil prices to fresh all-time highs on supply concerns and escalating Middle East tensions will likely act as a further drag on sentiment.
New York light sweet crude for December delivery was last up 35 cents at 90.79 usd, but off a record of 92.22 usd struck in Asian trading.
The dollar hit a fresh record low against the euro as traders continued to speculate that the Federal Reserve will cut interest rates at its meeting next week.
The euro was last up 0.3 pct at 1.4366 usd. Against the Japanese yen, the greenback gained 0.3 pct to 114.38.
Gold surged on the weakness in the dollar and rising oil prices. A falling dollar makes it cheaper to buy gold for investors whose currency is appreciating against the greenback. The precious metal is also viewed as a hedge against inflation.
The benchmark December contract was last up 7.90 usd at 778.90 usd an ounce.
On the bond market, Treasury prices dipped, sending yields higher in early trading.
The yield on the benchmark 10-year note stood at 4.37 pct versus 4.35 pct yesterday.
In company news, Microsoft shares gained 3.57 usd, or 11.1 pct, to 35.57 usd in extended-session trading yesterday after the software maker easily beat analyst estimates with fiscal first-quarter profit. Strong sales of Xbox 360 consoles, along with the new 'Halo 3' video game, boosted results.
Microsoft also raised its full-year earnings and revenue guidance.
Sierra Wireless Inc. shares picked up 1.93 usd, or 10 pct, to 21 usd in after-hours trading yesterday. The Canadian wireless-modem maker gave a fourth-quarter profit and revenue outlook above Wall Street's expectations. The company cited strong demand, but noted it expects supply constraints on some components.
Sierra Wireless also reported higher third-quarter profit and revenue.
Networking product maker Netgear said its third-quarter profit rose more than 66 percent as revenue gains outpaced an increase in operating expenses.
Countrywide Financial, Fortune Brands, Ingersoll-Rand and Wendy's International are some of the companies expected to post earnings before the market opens today.
Mark.cotton@thomson.com mc1/sal COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
