RPT WALL STREET OUTLOOK Higher on fresh batch of strong results led by Apple

RPT WALL STREET OUTLOOK Higher on fresh batch of strong results led by Apple

	Published : Thu, 26 Apr 2007 13:08 By : Agencies Print this Story

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LONDON (Thomson IM) - Wall Street is on track to open higher as stronger earnings from Apple and a narrower-than-expected loss at Ford continued a run of solid quarterly results that lifted the Dow Jones Industrial Average above the 13,000 level for the first time yesterday.

According to spread bettors IG Index, the Dow industrials are expected to open up 6 points higher at 13,096.

Yesterday, stocks surged on a raft of strong quarterly results and a sharper-than-expected increase in orders for durable goods.

The Dow rose 136 points, or 1.1 pct, to 13,090. The blue-chip index has risen in 18 of the past 20 sessions and gained more than 780 points in that time.

A trio of Fed speakers and the latest weekly jobless data will provide the economic backdrop to another busy day on the earnings front.

Dallas Fed president Richard Fisher speaks on the economy at 5.15 BST while Fed governor Frederic Mishkin goes before the International Monetary Fund to talk about globalisation and financial development at 5.30 pm BST.

San Francisco Fed president Janet Yellen speaks after the market close.

Meanwhile, first time claims for unemployment benefit are expected to dip to 330,000 from 339,000 in the prior week, according to the average estimate of economists polled by Thomson's IFR Markets.

Oil edged lower amid reports key producer Iran and the EU had made some progress in talks aimed at settling a dispute centring on the Persian Gulf country's nuclear enrichment activities.

But analysts said prices would not retreat much, as the market remains underpinned by declines in US gasoline stocks ahead of the peak demand summer driving season.

New York light sweet crude for June delivery was last down 29 cents at 65.55 usd a barrel.

The US dollar gained against the Japanese yen amid expectations the Bank of Japan will leave interest rates unchanged when it announces its decision tomorrow. The greenback also made modest gains against the euro and sterling.

At last check, the dollar was up 0.6 pct at 119.29 yen. The euro fell 0.2 pct to 1.3614 usd, while sterling gave up 0.2 pct to trade at 1.9970 usd.

In company news, Apple's forecast-beating earnings are set power gains in the technology sector

The company's first-quarter profit grew 88 pct on strong sales of its ubiquitous iPod digital music player and Mac computers.

Investor optimism in the trendsetting company may have also been bolstered by a vote of confidence the board of directors gave Apple's chief executive officer, Steve Jobs.

The board on Wednesday defended the iconic CEO from new accusations by a former Apple executive, who alleged Jobs may have had a more significant role in the company's backdating of stock options than previously stated.

Apple shares were up 8 pct at 102.93 usd in pre-market dealings, putting the company on track to break the 100 usd mark in official trading.

Programmable chip-maker Xilinx Inc's better-than-expected results will lend further support.

Elsewhere, shares in Ford Motor Co climbed 6 pct to 8.40 usd in pre-market dealings after the car maker's first-quarter loss narrowed versus a year ago.

Revenue also rose rose to 43 bln usd from 40.8 bln usd last year.

Shares in Wendy's International Inc surged as it used its first-quarter results to announce that it was forming a special committee of directors to consider a possible sale of the fast-food group, among other options.

Aetna shares could see early gains after the health insurer posted forecast-beating results and raised its annual operating earnings per share estimate.

Earnings from reports from Dow components Exxon Mobil and 3M are also slated for release before the market opens. ExxonMobil is expected to post a profit of 1.51 usd per share, while Post-It Note maker 3M is seen reporting a profit of 1.12 usd a share.

Mark.cotton@thomson.com

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