looking for a bounce up

Looking for a bounce up
U.S. stocks set to open higher as corporate results continue to please investors.
July 27 2006: 6:30 AM EDT


NEW YORK (CNNMoney.com) -- A positive tone from corporate results could push U.S. stocks higher when trading begins Thursday.

At 6:25 a.m. ET, Nasdaq and S&P futures pointed to a solidly higher open.

Overseas stocks were higher on good results from some leading multinationals based there. Stocks in Asia closed higher on strong tech earnings. After the close in Tokyo, Sony (Charts) reported a better than expected return to profitability, as it raised its earnings guidance by 30 percent.

Strong earnings from companies such as Royal Dutch Shell (Charts), Lufthansa and Volkswagen helped lift shares in Europe in early trading. But lower earnings and guidance were issued by European Aeronautic Defense & Space, the parent of aircraft maker Airbus.

Other European companies to report results Thursday include drugmaker AstraZeneca (Charts) and automaker DaimlerChrysler (Charts), which are both expected to post improved results.

In the United States, improved results are also expected from Dow component Exxon Mobil (Charts), while No. 1 cable company Comcast (Charts) is expected to see earnings edge a penny a share higher.

Oil was higher, as an Israeli general said that he expects the combat between Israel and Hezbollah to continue "for a few more weeks." U.S. light crude gained 16 cents to $74.10 a barrel in electronic trading, while Brent crude trading in London rose 24 cents to $74.24.

Treasury prices advanced, with the yield on the 10-year note sliding to 5.02 percent from 5.03 percent late Wednesday. The dollar was lower against the euro and the yen.

The economic reports due Thursday include the latest reading on consumer demand for new homes and big ticket items.

At 8:30 a.m. ET, the Census Bureau reports on durable goods orders, with economists surveyed by Briefing.com forecasting a 2.3 percent increase, following a 0.2 percent decline in May.

At 10 a.m. ET the Census Bureau releases its report on new home sales. On Tuesday, the National Association of Realtors reported that existing home sales fell for the third straight month in June as the trade group reported that it is now a buyer's market in real estate.

New home sales have also been showing weakness, as forecasts are for a nearly 6 percent drop in June.

After Wednesday's close, Pulte Homes (Charts), one of the nation's largest home builders, reported a drop in earnings and new orders and lowered its full-year guidance below current forecasts. Shares of the builder fell 1 percent in after-hours trading.

In other corporate news, EMI Group PLC, the world's No. 3 music company, said it has dropped plans to buy smaller rival Warner Music (Charts) "for the time being," which sent its shares down as much as 7 percent in London trading Thursday.

Intel (Charts) announced Thursday it plans to start shipping new processors for desktop and laptop computers in August. Its shares were slightly lower in Frankfurt trading after the announcement.

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