January 22, 1998 4:10 PM PST
Microsoft rattles markets
But by the time the U.S. markets closed today, Microsoft had recovered from its financial roller-coaster ride, with its stock up a relatively minor two points. Microsoft ended the day at 138-5/8, up 1-5/8 over yesterday after reporting its earnings.
Earlier, Microsoft's fortunes had a wide impact overseas, where stocks of U.S.-based companies fell in London. There, traders reported that Microsoft-related issues added jitters to an already-shaken market.
Stateside, there was heavy trading in Microsoft options after today's announcement of the Justice Department deal, which cleared the company of contempt-of-court accusations. Microsoft still faces broader charges related to a 1995 consent decree at the core of the case.
Microsoft yesterday posted net income of $1.13 billion, or 85 cents a share, for the quarter, compared with earnings of $741 million, or 57 cents a share, a year ago. Revenues for the quarter rose to $3.59 billion, up from $2.68 billion last year.
Analysts had expected the company to report earnings of 82 cents a share, according to First Call.
Dealers said the market was also concentrating on another raft of fourth-quarter earnings today and would pay particular attention to technology and bank stocks. "Technology and bank stocks are considered to be the most sensitive to the Asia turbulence," one dealer said.
In Asia itself, the Taiwan Weighted Index was at 8085.47, down 13.18 over the previous day. The Bombay Stock Exchange 200 Index was down 3.97 points at 329.94.
Reuters contributed to this report.