Markets Modest, Microsoft Jumps

11 Apr, 2005
New York City

Microsoft shares gained 16 cents after the company agreed to pay Gateway $150 million to resolve antitrust claims.

Microsoft shares gained 16 cents after the company agreed to pay Gateway $150 million to resolve antitrust claims.

Market averages rang in modest gains Monday morning with Ford (F) shares down 6.6%. Microsoft jumped 16 cents to $25.10 after the world’s biggest software maker said it pay personal-computer maker Gateway Inc. $150 million over four years to resolve legal claims.

Crude oil for May delivery was last down 61 cents at $52.71 in electronic trading, after falling around 9% last week from record highs. OPEC President Sheikh Ahmed Fahd al-Sabah said Saturday he expected producers would increase output in May.

Dow component Procter & Gamble (PG) announced a 12% increase in quarterly dividend to 28 cents a share from 25 cents. Payment will be made May 16 to shareholders of record April 22.

Shares of MCI (MCIP) jumped 16 cents to $26 after key investor announced plans to sell in cash 43.4 million shares for $25.72 each. Verizon has agreed to buy the stock and thus become MCI’s largest holder.

Constellation Energy (CEG) said it sold an electrical power plant in Cocoa, Florida for $206 million to a unit of Southern Co.

Software maker Hyperion Solutions (HYSL) upped its third-quarter outlook to 44 cents to 46 cents a share, above its January guidance of 35 cents to 40 cents. Revenue is seen at around $177 million.

99 Cents Only Stores (NDN) said same store sales fell 2.8% in the first quarter because of higher gasoline prices and a grocery strike in Southern California. Total sales rose 5.3% to $242.3 million.

Ford (F) shares dropped 7.1% to $10.25 after the U.S. automaker cut its 2005 earnings forecast to $1.25 to $1.50 a share, down from $1.75 to $1.95. Standard & Poor’s lowered its outlook for Ford to negative from stable.