Dow, Nasdaq Poised to Open Steady

Posted 11 January 2007 @ 02:21 pm EET     Print     Reprint     E-Mail     Comments

LONDON (AP) - Stock futures pointed to a steady opening Thursday, with the technology sector again in focus after Cisco Systems Inc. said it's suing Apple Computer Inc. in a trademark dispute over its new iPhone device. S&P 500 futures lost 0.60 points at 1,423.80 and Nasdaq 100 futures edged 0.75 points lower at 1,833.75.

U.S. stocks closed higher Wednesday as gains in the technology sector and Alcoa Inc.'s strong results outweighed crude oil and related commodities stocks. The Dow closed up 25 points, the S&P 500 index gained 2.7 points and the tech-heavy Nasdaq composite advanced 15 points.

The dollar was mixed, extending recent gains against the yen, but losing ground on the euro ahead of an interest rate decision by the European Central Bank, which is widely expected to hold its key borrowing rate at 3.5 percent.

The dollar climbed 0.7 percent against the yen to trade at 120.35. The Japanese currency has been under pressure recently amid expectations that the Bank of Japan will not raise interest rates in the near-term. The euro gained 0.2 percent at $1.2969.

Crude oil prices edged back below $54 a barrel, adding to a sharp fall on Wednesday that came after a government reports showed supplies of distillates and gasoline rose for a fourth week in a row. The February light crude contract slipped 16 cents to $53.86 a barrel in electronic trading.

Late Wednesday, Cisco said it's suing Apple in a trademark dispute over the computer company's new mobile iPhone product. Cisco is seeking to prevent Apple from using the iPhone trademark, which Cisco said it obtained in 2000 after acquiring Infogear. Cisco has been marketing a range of cordless and wireless phones under the iPhone brand since December.

Also after Wednesday's closing bell, Genentech Inc. reported fourth-quarter net income of $594 million, or 55 cents a share, compared with $339 million or 31 cents a share, last year. Excluding various items, Genentech would have reported adjusted earnings of 61 cents a share, ahead of analyst expectations for earnings of 56 cents a share.

Defense stocks such as General Dynamics Corp. and DynCorp International Inc. could also be in focus after President Bush announced plans to send more than 20,000 additional soldiers to Iraq.

Sapient Corp. reported that earnings excluding one-time items came in at 7 cents a share, above the average estimate of 4 cents. Its net income fell to $100,000, or less than 1 cent a share, from $6.31 million or 5 cents a share last year.

UBS upgraded life insurance and annuity company MetLife Inc. to buy from neutral, saying it expects the stock to rise following the release of fourth-quarter results. In addition, the broker told clients that with its estimated excess capital of about $4 billion by the end of 2007, the company seems well positioned to repurchase more shares than guided.

UBS also upgraded Cooper Cos., a manufacturer of specialty health-care products, to neutral from reduce to reflect the possibility of a takeover. UBS said there's a distinct possibility that a takeout scenario materializes and that it believes France's Essilor or Alcon Inc. are the most likely potential acquirers. Among companies due to announce earnings, CRA International Inc. is expected to report per-share earnings for the fourth quarter of 56 cents.