Oracle Lifts Guidance

Elena
16 Jun, 2006
New York City

Stock futures pointed to a lackluster opening of Friday trading session, reflecting news of mixed nature from two major software companies, as Oracle released a positive report on the tech side, but Microsofts shares came under pressure after Bill Gate''s announcement that he will give up his day-to-day role in the company in 2008.

[R]9:00AM Stock futures indicated a flat start on mixed news from Oracle and Microsoft.[/R]
U.S. stock futures retreated from yesterday’s high levels, pointing to a flat market opening, as two major software companies announced news of mixed nature, taking the market to different directions. Software maker Oracle Corp. ((ORCL)) jumped more than 6% after the closing bell Thursday, saying that the company’s Q4 earnings would come above earlier forecasts. Shares of Microsoft Corp. ((MSFT)) came under pressure on news that Chairman Bill Gates will give up his day-to-day role in the company in 2008 to devote more of his time to his philanthropic foundation. Shares of Microsoft slipped 0.5% to $21.95 on the Inet electronic network on Thursday. Shares of Adobe ((ADBE)) showed some pre-market weakness after the software company reported weaker-than-expected Q2 earnings and lowered its guidance for full year earnings and revenue. In other news, Indian drug maker Jubilant Organosys Ltd. is expected to bid more than $500 million for New Jersey-based drug firm Cambrex Corp. ((CBM)) according to a newspaper report. S&P 500 futures were down 1 point but slightly above fair value. Dow Jones industrial average futures fell 16 points, and Nasdaq 100 futures declined 2.25 points.

Winnebago Industries Inc, ((WGO)), manufacturer of motor homes, reported that Q3 net income dropped 25% to 40 cents a share, from 52 cents a share in the year-earlier period due to 13.6% revenue decline, beating analysts’ forecasts for earnings of 38 cents a share. The company attributed the decline to an industry slowdown and a shift toward lower-priced models for biting into net income.

Media General, ((MEG)), media company, reported that revenue advanced 6% to $76.9 million. The publishing division''s revenue advanced 7.3%, broadcast revenue edged up 2.9% and interactive media revenue gained 32.1%. The company forecast earnings in Q2 would exceed the 2005 Q2’s 80 cents a share, before a gain on the sale of the company''s interest in the Denver Post.


[R]7:30AM Asian shares continue their rally for a third straight day.[/R]
Asian markets finished higher. Japan''s benchmark Nikkei stock index climbed 2.82%, boosted by broad buying, following a jump on U.S. markets overnight. The Nikkei gained 408.58 points to close at 14879.34. Technology, banks and nonferrous metals shares led the gainers. Elpida Memory jumped 8.3% and Sharp reported a 3.6% gain. Matsushita Electric Industrial climbed 3.5% and Mizuho Financial Group advanced 4.9%. Nonferrous metals also rallied, with Sumitomo Metal Mining adding up 4.6% and Mitsubishi Materials gaining 6.3%. Hong Kong shares finished up, led by large-cap China Mobile, HSBC Holdings and Cnooc, following advances on U.S. markets overnight. The blue-chip Hang Seng Index advanced 407.57 points, or 2.64%, to 15842.65. HSBC advanced 1.7%, China Mobile surged 4.2%. Cnooc, offshore oil producer, jumped 6.3% on news it has the rights to a 51% stake in a deep-water natural gas discovery in the South China Sea. South Korea''s Composite Index, or Kopsi, closed up 3.5%. Taiwan''s leading index, the Taipex, finished up 2.3%.Chip makers were in focus after strong gains in the U.S semiconductor sub index. South Korea''s Samsung Electronics advanced 3.6%, while Hynix Semiconductor jumping 4.2%. In Taiwan, chip maker Taiwan Semiconductor advanced 4.4%.


[R]6:30AM European stocks continue to rebound.[/R]
European stocks traded higher in early session. The FTSE 100 in London advanced 0.6% at 5,654.1, the Xetra Dax in Frankfurt was up 0.8% to 5,464.45, the CAC 40 in Paris gained 0.9% at 4,765.45. On the corporate front, Philips Electronics, the Dutch consumer electronics company, agreed to buy Intermagnetics, a US maker of magnets and imaging tools for hospital imaging equipment, for $1.3 billion in cash. The stock advanced 1.8%. OMV, the Austrian oil and gas group, led the gainers, advancing 6.4%. The oil sector was strong as crude jumped above $70 a barrel, with Neste up 2.3% and Repsol 1.3%. EADS shed 2.2% as the aerospace company’s troubles following the announcement of delays to its A380 superjumbo deepened.

Light, sweet crude oil for July delivery advanced 54 cents to $70.04 a barrel and August Brent crude on London''s ICE Futures exchange gained 45 cents to $68.90 per barrel. Gold bullion opened Friday at a bid price of $582.20 a troy ounce, higher than $574.10 late Thursday. The dollar weakened slightly against the euro. The European currency inched up 0.1% at $1.2655, the British pound added 0.1% against the dollar to $1.8531, while the greenback was trading at 114.72 yen in, down 0.28 yen from late Thursday in New York