U.S. Stock-Index Futures Gain on Microsoft, Countrywide Results

Oct. 26 -- U.S. stock-index futures advanced after Microsoft Corp.'s sales topped analyst estimates by $1 billion and Countrywide Financial Corp. forecast a profit.

Microsoft, the world's biggest software company, climbed to a six-year high after winning new Xbox users with the ``Halo 3'' video game. Countrywide, the largest U.S. mortgage lender, rallied after saying last quarter was its ``earnings trough.''

Standard & Poor's 500 Index futures expiring in December added 9.4 to 1,534.5 as of 9 a.m. in New York. Nasdaq-100 Index futures climbed 14 to 2,207.25. Dow Jones Industrial Average futures increased 59 to 13,798.

U.S. stocks were poised for their sixth weekly advance in seven weeks, helped by profit growth that topped analysts' forecasts. S&P 500 members have reported average third-quarter profit growth of 0.7 percent, compared with analysts' projections for a decline of 0.6 percent, data compiled by Bloomberg show.

Sixty-six percent of the 287 members of the S&P 500 that have reported results beat analysts' profit estimates.

Microsoft rose $4.24 to $36.23. Net income increased 23 percent to $4.29 billion, or 45 cents a share, beating the 39- cent average in a survey by Bloomberg. Sales advanced 27 percent to $13.8 billion. Earnings this year may be as high as $1.81 a share, exceeding the average forecast of $1.73.

Countrywide added $2.73 to $15.89. The company predicted a return to profit in the fourth quarter and for 2008 after its first quarterly loss in 25 years. ``Prospects for the U.S. housing and mortgage markets, as well as for Countrywide, remain very attractive,'' President David Sambol said.

Fortune Brands Inc., the holding company for Jim Beam bourbon and Moen faucets, gained $5.18 to $88 after reporting third-quarter profit that topped the average analyst estimate on higher wine and liquor sales.

Wal-Mart Stores Inc., the world's biggest retailer, advanced 49 cents to $44.37. Merrill Lynch & Co. analysts raised their recommendation on the shares to ``neutral'' from ``sell.'' It was the company's only ``sell'' rating, according to data compiled by Bloomberg.