* Amazon surges after results
* Ford profit tops view, shares up early
* Procter & Gamble earnings fall
* Futures up: Dow 22 pts, S&P; 3.7 pt, Nasdaq 10.75 pts
By Edward Krudy
NEW YORK, April 27 (Reuters) – U.S. stocks were on track for
a fourth day of gains on Friday, with Amazon the latest company
to extend an earnings-driven rally that has erased most of
April’s losses and left investors eyeing a return to a new
recovery high.
Amazon.com Inc’s profit and sales beat expectation
as North America Media revenue, which includes books, DVDs and
music, rose 17 percent The stock jumped 14.5 percent to $224.48
in premarket trade.
With 254 companies in the S&P; 500 reporting, more than 72
percent have topped estimates, according to Thomson Reuters data
as of Thursday. A big beat from Apple Inc drove
Wednesday’s rally, which gave the Nasdaq its best day of the
year.
“By and large, earnings season has been positive and has
proven to be an offset to the euro debt situation and to the
mixed economic numbers of late,” said Andre Bakhos, director of
market analytics at Lek Securities in New York
“With the (S&P; 500) above 1,400 yesterday and closing just
below it completes a bottoming consolidation formation and now
the stage is set for a move high.”
In a potential wild card for markets, the first estimate of
U.S. first-quarter gross domestic product is expected to show
the economy expanded at a 2.5 percent annual rate, a Reuters
poll found, versus 3.0 percent in the fourth quarter. Investors
have become cautious after signs of a softening recovery.
S&P; 500 futures rose 3.7 percent and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration of the
contract. Dow Jones industrial average futures added 22
points, and Nasdaq 100 futures climbed 10.75 points.
The S&P; 500 is on track for its best week in a month, rising
1.6 percent so far this week and up for three straight days. The
move has wiped out much of the index’s losses for April and
lifted the index well above its 50-day moving average.
European shares inched higher early Friday, helped by
encouraging company earnings. The FTSEurofirst 300 index
of top European shares was up 0.6 percent.
Still, Institutional investors pulled back from equity funds
in the week to April 25, resulting in a modest net outflow for
the sector overall, according to Thomson Reuters’ Lipper data.
In other earnings news, Procter & Gamble Co lowered
its profit expectations for the year and posted lower earnings.
The shares fell 2 percent to $65.55.
Merck & Co Inc’s income came in slightly above Wall
Street estimates, but revenue trailed the Wall Street view on
generic competition and reduced revenue from alliances with
other drugmakers.
Ford Motor Co reported lower profit, hurt by weak
international results, particularly in Europe, and a higher tax
rate. But the shares rose 2.1 percent to $12.12 in premarket
trade as operating profit beat expectations.
Gilead Sciences Inc earnings fell short of
estimates as sales of its flagship HIV drugs rose nearly 20
percent but expenses also moved higher.
Starbucks Corp reported better-than-expected
quarterly profit but global sales missed estimates due to
weakness in Europe. It shares fell 4.4 percent to $58.
Online travel agency Expedia Inc topped estimates
for profit growth as worldwide hotel revenue increased. Its
shares gained 20.3 percent to $39.26.
