Stock futures mixed with latest earnings results

[July 17, 2009]  NEW YORK (AP) -- Stock futures were trading in a narrow range Friday as investors received mixed signals from the latest round of earnings reports.

Overseas markets rose, following gains in the U.S. on Thursday.

With earnings the primary focus of investors all week, General Electric was the latest major company to report better-than-expected second-quarter profit. But GE's revenue fell short of expectations and profit was still down 49 percent from last year amid continued woes at its finance unit and ongoing weakness in its big industrial units due to the recession.

Google Inc. also reported mixed results after the market closed Thursday. The Internet giant said its second-quarter profit was its biggest since it went public five years ago. However, investors were concerned that revenue growth continued to decelerate. It was Google's second straight quarter of single-digit revenue growth.

IBM Corp. reported revenue below expectations, but its profit continued to improve. The computer and technology firm's second-quarter results were strong enough that it increased its full-year earnings forecast.

During the recession companies have aggressively been slashing expenses to maintain profitability through the downturn. Many have been successful at beating analysts' earnings expectations as their cost-cutting measures have thus far outpaced the slowdown in sales and revenue.

While pouring through the latest earnings, investors will also keep a close on two major banks -- Bank of America Corp. and Citigroup Inc. -- reporting Friday. The reports could show how far the financial sector has recovered since last fall's credit crisis.

Ahead of the opening bell, Dow Jones industrial average futures fell 3, or 0.03 percent, to 8,666. Standard & Poor's 500 index futures fell 0.60, or 0.1 percent, at 935.10, while Nasdaq 100 index futures rose 2.75, or 0.2 percent, to 1,515.50.

Aside from the onslaught of earnings reports, investors will also get a reading on housing starts. The Commerce Department is expected to report construction of new homes and apartments slipped 0.4 percent in June to a seasonally adjusted annual rate of 530,000 units.

Building permits, seen as a good indicator of future activity, are expected rise 0.4 percent to an annual rate of 520,000 units in June.

The report is due out at 8:30 a.m. EDT.

Stocks rallied again Thursday after a strong earnings report from JPMorgan Chase & Co. and as investors pushed into technology stocks ahead of IBM and Google's results. The tech-heavy Nasdaq advanced for the seventh straight day, rising 1.2 percent, and closed at its highest level since October. The Dow jumped 1.1 percent.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.56 percent from 3.58 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.17 percent from 0.16 percent late Thursday.

The dollar rose against other major currencies, while gold prices also rose.

Overseas, Japan's Nikkei stock average rose 0.6 percent. In afternoon trading, Britain's FTSE 100 gained 0.8 percent, Germany's DAX index rose 0.8 percent, and France's CAC-40 gained 0.8 percent.

[Associated Press; By STEPHEN BERNARD]

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