New York: U.S. stocks looked set to open higher on Friday after financial results from Citigroup Inc gave investors hope the worst of the credit crisis may be ending and other top companies delivered stronger-than-expected profits. Technology bellwether Google Inc posted quarterly profit and revenue above estimates late on Thursday and said it saw no impact from a weakening economy.
Major manufacturers Honeywell International and Caterpillar Inc also cheered investors by reporting stronger-than-forecast earnings. Shares of both Google, owner of the most popular Internet search engine, and Citigroup, the largest U.S. bank, were hammered by Wall Street this year, with Google down 35 per cent and Citigroup off 18 per cent so far this year.
Citigroup posted a wider-than-expected loss on Friday but its shares rose 6 per cent to $25.46 before the opening bell. Like Merrill Lynch & Co, which posted a larger-than-forecast loss on Thursday, Citigroup gave investors relief that financial firms were taking steps to put the credit crisis behind them.
"The good news for Citi and Merrill and everybody in financials that's had a well-known exposure to subprime is that this is the quarter they get to clear the decks," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston.
S&P 500 futures SPc1 rose 15.5 points, well above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures DJc1 rose 1254 points, and Nasdaq 100 NDc1 futures gained 18.5 points.
Google's stock surged 18 per cent to $529.38 in after-hours trading on Thursday.
Honeywell reported a 22.2 per cent jump in profit on strong demand from its aviation and commercial construction sectors. Its shares rose 4.5 per cent to $60.00.
On Thursday, the Dow Jones industrial average .DJI eked out a gain of 1.22 points, or 0.01 per cent, to end at 12,620.49. The Standard & Poor's 500 Index .SPX crept up 0.85 of a point, or 0.06 per cent, to close at 1,365.56.
Major manufacturers Honeywell International and Caterpillar Inc also cheered investors by reporting stronger-than-forecast earnings. Shares of both Google, owner of the most popular Internet search engine, and Citigroup, the largest U.S. bank, were hammered by Wall Street this year, with Google down 35 per cent and Citigroup off 18 per cent so far this year.
Citigroup posted a wider-than-expected loss on Friday but its shares rose 6 per cent to $25.46 before the opening bell. Like Merrill Lynch & Co, which posted a larger-than-forecast loss on Thursday, Citigroup gave investors relief that financial firms were taking steps to put the credit crisis behind them.
"The good news for Citi and Merrill and everybody in financials that's had a well-known exposure to subprime is that this is the quarter they get to clear the decks," said Arthur Hogan, chief market analyst at Jefferies & Co. in Boston.
S&P 500 futures SPc1 rose 15.5 points, well above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.
Dow Jones industrial average futures DJc1 rose 1254 points, and Nasdaq 100 NDc1 futures gained 18.5 points.
Google's stock surged 18 per cent to $529.38 in after-hours trading on Thursday.
Honeywell reported a 22.2 per cent jump in profit on strong demand from its aviation and commercial construction sectors. Its shares rose 4.5 per cent to $60.00.
On Thursday, the Dow Jones industrial average .DJI eked out a gain of 1.22 points, or 0.01 per cent, to end at 12,620.49. The Standard & Poor's 500 Index .SPX crept up 0.85 of a point, or 0.06 per cent, to close at 1,365.56.
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