calling for a rally

A good result by Amazon may kick the web businesses back up the charts.


Stock futures higher as Texas Instruments, Qualcomm results offer hope to investors.
January 23, 2003: 5:47 AM EST
By Mark M. Meinero & Meghan Collins, CNN/Money Staff Writers

NEW YORK (CNN/Money) - After five straight losing sessions that have wiped out the Dow industrials' gains for 2003, there's hope for bulls that some positive telecom technology results could turn U.S. markets around Thursday.

At 5:30 a.m. ET, futures pointed to a strong advance at the opening bell.

Results from Texas Instruments and Qualcomm appear to be giving heart to investors.

Texas Instruments (TXN: Research, Estimates), the communications chip maker, late Wednesday reported a profit, before a special writedown, that exceeded analysts' expectations. The company also saw improved revenue.

Shares of Texas Instruments rose $1.15 to $15.40 in after-hours trading Wednesday.

Qualcomm, a developer of wireless communications technology, said demand from China and Japan lifted fourth-quarter earnings well above estimates. The company's shares were 2 percent higher in European trading Thursday.

Futures came a little off their highs after Nokia said its outlook for first-quarter sales was weak. The world's largest cell phone maker, based in Finland, did report a better-than-expected fourth-quarter profit.

Nokia (NOK: Research, Estimates)'s American depositary shares rose 3 cents to $14.94 Wednesday.

AT&T, McDonald's and Caterpillar are the three Dow issues slated to report results before trading begins.

For AT&T (T: Research, Estimates), this report could be another step toward its comeback as the leader in the telecom industry. The provider of long-distance and cable service is seen putting up a fourth-quarter profit of 71 cents a share, above the 25 cents earned a year earlier, according to a consensus of analysts surveyed by First Call.

McDonald's (MCD: Research, Estimates), the fast-food leader, has already indicated how weak this past quarter was amid closings throughout the world and pricing pressure. The company's operating earnings are expected to have declined to 25 cents a share from 34 cents a year earlier.

Caterpillar (CAT: Research, Estimates), the maker of industrial equipment, is forecast to report profit of 68 cents a share, down from 76 cents a year earlier.

Among other companies scheduled to report results before trading begins are regional phone service provider BellSouth (BLS: Research, Estimates), Wall Street Journal publisher Dow Jones (DJ: Research, Estimates) and pound cake purveyor Sara Lee (SLE: Research, Estimates).

After the closing bell, online retailer Amazon.com (AMZN: Research, Estimates) weighs in with its closely watched fourth-quarter results. It's expected to show increased profit of 14 cents a share from 9 cents a year earlier, and the outlook for 2003 will be closely scrutinized for more signs of success.

Also due after the close are biotech developer Amgen (AMGN: Research, Estimates), fiber-optic equipment maker Corning (GLW: Research, Estimates) and latte grande expert Starbucks (SBUX: Research, Estimates).