Stocks: Investors await earnings, home sales

Written By limadu on Jumat, 25 Januari 2013 | 04.32

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NEW YORK (CNNMoney)

U.S. stock futures edged higher ahead of quarterly reports from several major corporations, and fresh data on the housing market.

Before the bell, firms including Halliburton (HAL, Fortune 500), Honeywell (HON, Fortune 500) and Procter & Gamble Co (PG, Fortune 500) will report quarterly earnings. Overall, S&P 500 companies are expected to report earnings growth of 4.45% for the last three months of 2012, according to S&P Capital IQ.

Of the 142 companies that had reported results as of Thursday evening, 94 beat analysts' expectations.

Investors will also get another look at the strength of the housing recovery on Friday, with the Census Bureau set to release data on new home sales for December at 10 a.m. ET.

Extreme greed drives market higher

U.S. stocks ended Thursday mixed, with Apple (AAPL, Fortune 500) weighing on the Nasdaq. The tech giant's shares fell more than 12% after it said sales in the current quarter would come in below analysts' expectations, even though earnings in the most recent quarter rose to a record $13.1 billion.

Starbucks (SBUX, Fortune 500) shares rose 2% in premarket trading Friday, after the company reported earnings late Thursday that were in line with analysts' estimates.

Meanwhile, Microsoft (MSFT, Fortune 500) shares sank after hours as the firm reported quarterly sales that fell short of expectations. And AT&T (T, Fortune 500) shares were flat after the wireless carrier beat on sales but missed on earnings.

Overseas, European markets were higher in morning trading, with the DAX (DAX) in Germany adding more than 1%. London's FTSE 100 (UKX) edged higher early Friday, despite data showing the U.K. economy shrank 0.3% in the fourth quarter. The weaker-than-expected performance raised concerns that Britain could slide back into recession.

Asian markets ended mixed. Shares in Shanghai and Hong Kong fell sightly, but the Nikkei (N225)in Japan surged more than 2%. Japanese stocks have rallied as investors bet recent moves by the Bank of Japan and newly-elected prime minister Shinzo Abe will revive the nation's economy. To top of page

First Published: January 25, 2013: 6:19 AM ET


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