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Dow seen opening higher ahead of US data, Starbucks, Ford in focus

27th Jan 2012, 7:40 am by Joyanta Acharjee
Dow seen opening higher ahead of US data, Starbucks, Ford in focus

US equity markets looked set to open higher Friday as investors continue to monitor Europe's debt crisis and await the latest US economic growth data.

In pre-market trading, the Dow Jones Industrial Average rose 25 points to 12,709, the S&P 500 rose 2.4 points to 1,317.70 and the NASDAQ was up 8.25 points to 2,461.50.
 
Thursday US markets ended in the red after disappointing housing data with the Dow down 0.18%, the S&P 500 was 0.57% lower and the NASDAQ ended the session down 0.46%.

EU Commissioner Olli Rehn has said that a deal to restructure Greek private debt will be closed either Friday or perhaps over the weekend.

In corporate news, Starbucks (NASDAQ:SBUX), the world’s largest coffee-shop chain, said late Thursday that first-quarter earnings rose 10% as consumers bought more specialty beverages during the holiday season.

Net income in the quarter ended January 1 rose to $382.1 million, or 50 cents per share, from $346.6 million, or 45 cents per share a year earlier. Revenue advanced 16% to $3.44 billion.

Analysts projected earnings of 49 cents on revenue of $3.29 billion, according to Bloomberg.

Ford Motor Co. (NYSE:F) posted its 11th consequtive quarterly profit, helped by a one-time tax gain.

For the querter ended December 31, net earnings came in $13.6 billion, or $3.40 cents per share, compared with $190 million, or 5 cents, a year earlier. On an adjusted basis, earnings of 20 cents per share trailed the 25-cent average of analyst estimates, according to Bloomberg.

Biotech giant Amgen (NASDAQ:AMGN) said fourth-quarter profits fell 8.5% as its expenses for taxes and for producing and selling drugs rose faster than revenue.

Net income was $934 million, or $1.08 per share, down from $1.02 billion, or $1.08 per share, a year earlier.

On an adjusted basis, earnings came in at $1.04 billion, or $1.21 per share, down 6% from $1.1 billion, or $1.17 per share in 2010's fourth quarter. Revenue rose 3% to $3.97 billion from $3.84 billion.

Analysts expected adjusted earnings of $1.22 per share on revenue of $3.92 billion, according to FactSet.

Data network equipment maker Juniper Networks (NASDAQ:JNPR) said fourth-quarter earnings fell 49% on weak router sales.

The company posted earnings of $96.2 million, or 18 cents per share, down from $190.2 million, or 35 cents per share, a year earlier as revenue slipped 5.8% to $1.12 billion.

In early January the company forecast earnings of between 26 cents and 28 cents per share with $1.11 billion to $1.12 billion in revenues.

Shares of Transocean (NYSE:RIG) were up 6% premarket after a US federal judge ruled that BP (NYSE:BP)(LON:BP) must indemnify the oilfield services company against compensatory damages linked to the 2010 Gulf of Mexico spill.

However, the judge also said BP wouldn't have to protect Transocean from punitive damages or civil penalties under the Clean Water act.

On the economic front, fourth-quarter GDP data is due at 8:30 am EDT with economists expecting a growth rate of 3.2%, up from 1.8% in the third quarter.

The University of Michigan/Thomson Reuters consumer sentiment gauge for January is also due for release Friday.

Economists are expecting the index to come in at 74.5, higher than the preliminary January reading of 74 and December's 69.9.

Commodities

On the NYMEX, gold futures for February fell $3.40 to $1,723.20 an ounce while crude for March delivery rose 46 cents to $100.17 a barrel.

Europe

European stocks were mixed in morning trading with the FTSE 100 0.1% lower, the DAX added 0.3% and the CAC 40 was flat.

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