Filed under: Before the bell, Earnings reports, Deals, Dell (DELL), Market matters, Tiffany and Co (TIF), US Airways Group (LCC), Contl Airlines’B’ (CAL), UAL Corp (UAUA), Economic data, Oil
Stock futures were higher early Friday morning as oil futures continued to drop and Dell reported surprising strong earnings. (Read the full transcript of the conference call that followed the earnings announcement.)
Some upcoming economic readings about personal income might affect the Street’s mood yet, but as long as oil prices remain at around $125 a barrel or go even lower, investors might feel more positive on the day.
If last week stocks witnessed one sharp-drop session after another, this week stocks have been more consistent on their way up and on Thursday U.S. stocks rose for the third session in a row due to a large drop in crude-oil futures. The Dow industrials rose 52 points, or 0.41%, the S&P 500 added 7 points, or 0.53%, and the Nasdaq Composite rose 21 points, or 0.87%.
On the economic calendar today several releases:
- At 8:30 a.m. EDT April Personal Income and spending is due. While not perfect, personal income is a decent indicator of future consumer demand. Once personal income starts to stagnate, meaning inflation has caught up with income growth, this is another indication of a recession.
A price index is included in the income report. The personal-consumption expenditures is often considered to be the Federal Reserve’s preferred inflation gauge. - A tiny after the open, Might Chicago PMI, a regional manufacturing survey, is due out.
- Finally, at 10:00 a.m., a revised reading on consumer sentiment from the University of Michigan for May will also be released.
On the corporate side, Dell (NASDAQ: DELL) is the large surprise. Dell shares jumped 10% in premarket trading after the computer maker reported Thursday after the close a 4% rise in quarterly profit and a 19% revenue growth. The solid first-quarter results beat Wall Street expectations for first-quarter sales and profit.
After financial media got so excited about their executive meeting, UAL Corp. (NYSE: UAUA) United Airlines and UA Airways (NYSE: LCC) has ended merger talks, according to published reports as United is close to an alliance agreement with Continental Airlines (NYSE: CAL).
Also, Tiffany & Co. (NYSE: TIF) reported results Friday morning. TIF shares are up over 5.7% in premarket trading after the jeweler said that strong growth in Asia-Pacific and European markets helped its first-quarter profits rise 19%, beating analysts’ expectations. The company warned that it doesn’t anticipate an improvement in the U.S. until later this year.
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