HP Rises Ahead of Results
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Morgan Stanley didn't wait for good results from HP to say nice things about the company.
HP, which will report quarterly results after the close on Monday, gained 3.8% Friday after Morgan Stanley analyst Kathryn Huberty upgraded the company's stock on the strength of its growing software portfolio, thanks to acquisitions like Mercury Interactive, Neoware and Opsware.
Those next-generation capabilities will drive HP's results in 2009, said Huberty, and she raised her 2009 earnings estimates to $3.85 a share, above $3.70 Thomson Financial consensus estimates.
Analysts expect October quarter earnings of 82 cents a share from HP on an 11.5% increase in sales to $27.4 billion. Current quarter earnings and guidance are expected to be 77 cents and $27 billion.
Stocks gained during Friday's trading session, as strength in HP and a $10 billion share buyback from Cisco Systems outweighed bad news from FedEx and Fannie Mae. Cisco gained 2%.
Salesforce.com surged 13% on its results and Intuit gained 3.5% on its numbers, but BEA Systems slipped 2% on declining license sales.
Garmin jumped 16% after withdrawing its bid to acquire Tele Atlas.
Expedia and VeriSign jumped on upgrades.
AMD lost ground despite news of a big investment.
The Nasdaq rose 18 to 2637, the S&P gained 7 to 1458, and the Dow added 66 to 13,176. Volume rose to 4.13 billion shares on the NYSE, and 2.52 billion on the Nasdaq. Decliners led by an 18-15 margin on the NYSE, and 15-13 on the Nasdaq. Upside volume was 52% on the NYSE, and 60% on the Nasdaq. New highs-new lows were 38-376 on the NYSE, and 51-252 on the Nasdaq.