Solid earnings, outlooks boost stock futures
Intel Corp (INTC.O) jumped 5.6 percent to $21.11 in premarket trade after forecasting quarterly revenues well above Wall Street’s estimates, easing fears the world’s largest chipmaker is struggling as personal computer sales growth wanes.
Yahoo Inc (YHOO.O) advanced 4.2 percent to $16.80 after the Internet company said an important partnership with Microsoft Corp (MSFT.O) is taking longer than expected to pay off, but the company posted quarterly earnings that topped Wall Street targets.
“It’s not just that the earnings were good. Expectations were that we were going to begin to get a series of disappointing earnings,” said Rick Meckler, president of LibertyView Capital Management in New York.
“So you’ve got not just the reaction to the better-than-expected earnings, but a change in sentiment from what has been seen as a possibly very disappointing earnings quarter, particularly for technology.”