Before the bell: Microsoft's upbeat earnings should boost techs

Stock index futures pointed to a higher opening Friday on Wall Street, amid speculation that technology stocks would rise on Microsoft (NASDAQ: MSFT)'s strong earnings report late Thursday. Optimism was tempered on expectations that the monthly consumer confidence survey due Friday morning will show a declining economic outlook.

Yesterday, the Dow Jones Industrial Average lost just 3.33, ending a volatile trading session that saw the index swing as low as far as 100 points down. The Nasdaq Composite Index fared worse, falling 23.90, or 0.86%, to 2,750.86, while the S&P slipped 1.48 to 1,514.40.

The University of Michigan will release final consumer confidence figures for October at 10 this morning. The monthly survey is expected to show Americans more pessimistic about the nation's economic future.

Troubled Countrywide Financial (NYSE: CFC) will report third-quarter results this morning. Analysts expect the top mortgage lender to post losses of $1.26 per share, though expectations vary widely.

Trucking group Arkansas Best Corp. (NASDAQ: ABFS) and industrial conglomerate Ingersoll-Rand (NYSE: IR) are among other companies reporting earnings Friday.

Abroad, stocks headed higher in Asia, with Japan's Nikkei and Hong Kong's Hang Seng indexes rising. Stocks were flat in early European trading.

Microsoft reported first-quarter earnings after the market close Thursday, posting a 23 percent rise that exceeding analysts' expectations. The software giant raised its forecasts for the year, citing sales of Windows Vista and its new Xbox 360 game Halo 3.

Merrill Lynch (NYSE: MER) shares advanced overseas on reports that Merrill Lynch CEO Stanley O'Neal discussed merger potential with Wachovia (NYSE: WB) without consulting Merrill's board of directors.