PARIS, Feb 20 - U.S. stocks are set for a firmer start on Friday, retracing Thursday's late sell-off, with Thursday's in-line results from Hewlett-Packard heading a thin earnings menu and with attention turning to inflation data. The computer maker reported quarterly profit that rose 30 percent, growing revenues twice as fast as rival Dell in desktop and notebook PCs for the second consecutive quarter. Still in the technology sector, business software maker BEA Systems rose in after-the-bell trade after it said fourth-quarter profit and revenue rose on strong sales of its WebLogic Platform software used for building Web-based programs.
Shares of BEA rose to $13.17 on INET electronic brokerage system from a close of $12.93 on the Nasdaq. Talk of mergers and acquisitions may tickle markets yet again after The Wall Street Journal said, citing an unnamed source, that Verizon Communications expected bids by the end of March for two sets of local telephone lines. The sale of local telephone lines in Hawaii and New York State may bring it as much as $8 billion, the Journal said. Verizon was not immediately available to comment. Oracle will also be in focus after The Wall Street Journal said, citing Oracle executives, that Justice Department staffers want to block the software maker's $9.4 billion bid for PeopleSoft by using a legal theory that is not part of the department's usual merger guidelines. On the macroeconomic front, investors will eye the Consumer Prices Index, due to be published at 1330 GMT, with economists polled by forecasting the headline index rose 0.3 percent in January. Markets were looking ahead to next week's consumer confidence numbers. By 1145 GMT, U.S. stock index futures were pointing to a slightly higher opening.
On Thursday, the Dow Jones industrial average <.DJI> slipped 0.07 percent to 10,664.73, off from a session's high last seen on June 21, 2001. The tech-focused Nasdaq Composite Index <.IXIC> dropped 1.47 percent, to 2,045.96. Since the rally began last March the Dow has risen more than 40 percent, while the Nasdaq has gained 63 percent. Other corporate news included upscale department store chain Nordstrom after it posted higher fourth-quarter earnings, beating forecasts thanks to strong holiday sales, better merchandising, and cost controls. Nordstrom shares rose to $40.50 on INET from its close at $39.78 on the NYSE.//www.reutres.com