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Stocks open higher as Ford results top view
By TIM PARADIS,AP Business Writer AP - 2 hours 15 minutes ago
NEW YORK - Stocks are higher after Ford Motor Co.'s better-than-expected results for the first quarter are fanning hopes for the overall economy.
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The loss at the nation's second-largest automaker was less than expected and the company burned through far less cash during the quarter than in the fourth quarter. The stock is up 15 percent in early trading.
The news from Ford comes as investors await details on the methodology for the "stress tests" that regulators have given to 19 of the largest U.S. financial institutions.
In the early going, the Dow Jones industrial average is up 48 at 8,007. The Standard & Poor's 500 index is up 5 at 857. The Nasdaq composite index is up 8 at 1,660.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) _ Stock futures pointed to a moderately higher open Friday after Ford Motor Co. posted better-than-expected results for the first quarter and said it is burning through less cash.
Futures had been essentially flat early Friday ahead of details on how the government is evaluating the health of the nation's largest banks.
Ford's report buoyed hopes for the overall economy as the nation's second-largest automaker reported a smaller-than-expected loss. The automaker also said it spent $3.7 billion more than it brought in during the quarter, far less than the $7.2 billion the company ate through in the fourth quarter. The stock jumped 25 percent to $5.59 a share in electronic trading.
The welcome news from Ford comes as investors wait for details on the methodology for the "stress tests" that regulators have given to 19 of the largest U.S. financial institutions. Federal regulators on Friday will privately begin telling the nation's 19 largest financial institutions how well they performed.
The release of the methods could signal which banks might be in trouble and could lead to volatile trading as investors make their assesments.
The results of the stress tests won't be publicly released until May 4.
Dow Jones industrial average futures rose 22, or 0.3 percent, to 7,937. Standard & Poor's 500 index futures rose 4.00, or 0.5 percent, to 852.70, while Nasdaq 100 index futures rose 11.75, or 0.9 percent, to 1,353.75.
Investors showed little reaction to a government reporting showing demand for big-ticket manufactured items fall less than expected in March.
Orders to U.S. factories for durable goods _ those expected to last at least three years _ fell by 0.8 percent last month, less than the 1.5 percent decline that economists had been expecting. The report fanned some hopes that a slide in manufacturing is starting to bottom out.
Wall Street expects new home sales will show an increase in March for the second straight month. The Commerce Department is expected to report that sales rose last month to a seasonally adjusted annual rate of 340,000 units from 337,000 units in February, according to Thomson Reuters. The report is due at 10 a.m. EDT.
In earnings news, manufacturer 3M Co.'s quarterly earnings fell 48 percent as the global economic slowdown squeezed sales in everything from health care to office supplies. The maker of Post-it notes and Scotch tape, lowered its full-year profit forecast.
Manufacturer Honeywell International Inc. said its first-quarter earnings fell 38 percent as a slide in commercial aviation and autos hurt sales. The company also lowered its earnings forecast for the year.
Xerox Corp. reported a profit for the first quarter that met its revised forecast. The company warned last month results would suffer because of restructuring costs and declining technology spending. Xerox also said its profit in the second quarter would fall short of Wall Street's estimates.
In other trading, bond prices slipped. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.95 percent from 2.93 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.10 percent from 0.09 percent Thursday.
The dollar was higher against other major currencies, while gold prices rose.
Overseas, Japan's Nikkei stock average fell 1.6 percent. In afternoon trading, Britain's FTSE 100 rose 1.9 percent, Germany's DAX index rose 2.3 percent, and France's CAC-40 rose 2 percent.
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