Google's Earnings Surprise, Citi's Loss Gets Shrugs
Google's first-quarter earnings beat expectations; Citigroup posts $5B loss.
April 18, 2008— -- NEW YORK (AP) - Wall Street tilted to a higher opening Friday, with investors relieved that there were no shocks as Citigroup Inc. reported first-quarter results.
The financial services company had a $5.1 billion loss during the first quarter as poor bets on mortgages and leveraged loan slopped billions of dollars from its investment portfolio. However,the shortfall was not as massive as the nearly $10 billion loss suffered during the fourth quarter.
In addition, Chief Executive Vikram Pandit is expected to announce a plan to cut costs by as much as 20 percent, according to a report in the Financial Times Thursday. That decision couldresult in tens of thousands of job cuts.
Citi shares rose 4 percent in pre-market electronic trading after closing at $24.03 on Thursday.
With little on the economic calendar, investors are expected to absorb recent earnings reports to give the market direction. Stocks in focus include Google Inc., which late Thursday reported first-quarter earnings and revenue growth that surpassed analysts' predictions - and that helped technology futures surge before theopen.
Dow Jones industrial average futures added 107, or 0.72 percent, to 12,765. Standard & Poor's 500 index futures rose 10.20, or 0.74percent, to 1,382.40. Nasdaq 100 index futures were up 14.75, or 0.79 percent, at 1,881.75.
Bond prices fell as stocks looked more attractive. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.73 percent late Thursday.
Caterpillar Inc. is on tap to post results during the session. The heavy equipment maker is expected to post a profit of $1.34 pershare.
Oil prices slipped below $115 a barrel amid thin trading volumes as the U.S. dollar held its ground against the euro. Light, sweetcrude fell 65 cents to $114.17 a barrel in pre-market electronic trading on the New York Mercantile Exchange.
Gold prices rose, and the dollar was mixed against other major currencies.
Overseas, Japan's Nikkei stock average rose 0.58 percent. Britain's FTSE 100 shed 1.09 percent, Germany's DAX index fell 0.31 percent, and France's CAC-40 rose 1.51 percent.
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