U.S. Stocks Poised For Mixed Start; Google Seen Lifting Techs
NEW YORK (MarketWatch) -- Wall Street on Friday headed towards a third day of mixed action as rising crude prices intensified worries about the economy, though investors found some solace among technology stocks as Google Inc. beat earnings estimates.
"It looks like the Nasdaq might lead the market higher," said Peter Cardillo, chief market economist at Avalon Partners. "But the pattern remains intact; it's sort of like a seesaw market."
Futures for the Dow Jones Industrial Average fell 60 points to 13,880.
Those for the S&P 500 shed 6.50 points to 1,540.30, while Nasdaq 100 futures lapsed 0.25 points to 2,205.75, after early gains.
Added to the mix is a talk scheduled for later in the day by Federal Reserve Chairman Ben Bernanke and well as the expiration of minor options, analysts said.
"The market will be paying very close attention to Bernanke, while keeping an eye on the price of oil, along with options and earnings," said Cardillo.
In commodities markets, crude-oil futures tore through $90 a barrel for the first time ever, with the November-dated light-crude contract peaking at $90.02 a barrel before climbing down. .
Google Inc. shares, which have vaulted to new highs in recent weeks, hitting $600 for the first time earlier this month, climbed even further after the Internet search giant delivered against tall Wall Street expectations after Thursday's close.
Ahead of Friday's open, Honeywell International Inc. reported a 14% rise in third-quarter earnings and raised its outlook for the full year.
Dow member McDonald's Corp. posted a 27% hike in quarterly profits, with the fast-food chain's bottom line supported by strong sales in Asia and the weak dollar.
Another blue chip, Caterpillar Inc. cut its 2007 profit target, citing "severe weakness" in key U.S. markets. The equipment maker reported a 21% rise in third-quarter earnings.
Xerox Corp. said its third-quarter net income fell 53%, but earnings and sales topped expectations.
In another earnings report early Friday, Wachovia Corp. said its third-quarter earnings fell 10% from a year earlier as the bank booked a $1.3 billion write-down from disruption in the fixed-income markets. .
Capital One Financial Corp. late Thursday reported a third quarter loss of $81.6 million, or 21 cents a share, from a profit of $750.4 million, or $1.89 a share, a year ago.
In another bearish development for the beleaguered financial sector, Massachusetts securities regulators are probing whether Bear Stearns Cos. improperly traded with two in-house hedge funds, according to a report in the Wall Street Journal.
By Kate Gibson