23 April 2004, 16:55  US stocks set to rise as more results beat expectations

U.S. stocks are set to climb for a third session on Friday as investors welcome strong revenue increases at Microsoft Corp. and a run of strong earnings from industry leaders early Friday. Stocks have moved higher in the past two sessions, but still remain below 2004 highs, as investors focus on largely positive earnings and outlooks coming from corporate America in the busiest week of the first-quarter reporting season. By Thursday evening 265 of the companies in the S&P 500 had reported quarterly earnings, with 205 -- or almost 78 percent -- beating analysts' expectations, according to data from Research. That is well ahead of the 60 percent beating expectations at this time last year. Microsoft is likely to take the lead after the world's largest software maker on Thursday said quarterly profit fell after charges to settle legal disputes, but said revenue rose a better-than-expected 17 percent on stronger personal computer sales. Its shares rose in extended hours trading on Thursday and were up before the opening bell. Encouraging earnings news continued on Friday as three major companies reported sharply improved results. Early on Friday Xerox Corp. said it recorded a first-quarter net profit, against a year-ago loss, driven by strong sales of its new copiers and printers.
Schlumberger Ltd. , the world's largest oilfield services company, said quarterly profit rose 48 percent as high oil prices and demand drove increased exploration and production activity. International Paper Co. , the world's largest forest products company, said its first-quarter earnings rose 66 percent on higher sales volumes in some paper and packaging grades. Investors may be further buoyed by Commerce Department data showing orders for long-lasting durable goods surged again in March, as U.S. factories sought to keep up with unexpectedly strong demand for a broad array of products. The department said orders for big-ticket items meant to last at least three years jumped 3.4 percent, well above the 0.8 percent gain that Wall Street analysts had been expecting. Futures on the Standard & Poor's 500 Index <.SPX> were trading up a little at 1139.90 before the bell.///

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