9:45AM New York – U.S. stocks traded mixed at the opening on weak guidance from Microsoft.

Tech stocks fell at the opening after earnings at Microsoft declined on weak sale in Windows operating systems. Dow and S&P 500 edged higher in the morning trading after American Express reported less than expected earnings and revenue decline.

Microsoft stock fell after it reported third quarter revenue of $14.45 billion declined from $14.40 billion and net income declined from $4.39 billion from $4.93 billion a year ago. Earnings per share declined to 47 cents from 51 cents a year ago.

The results included European Commissions fine of $1.5 billion paid in the quarter.

Entertainment and devices revenue that includes sales of Xbox 360 game console in the quarter grew 68% over the comparable period last year. Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and tools revenue rose 18% in the quarter, 23rd quarterly double digit revenue growth in a row.

Microsoft guided second quarter revenue between $15.5 billion and $15.8 billion and diluted earnings per share between 45 cents and 48 cents.

Microsoft increased dividend to 11 cents from 10 cents a year ago.

Microsoft stock (MSFT: chart) fell $1.76 to $30.01 at the opening.

American Express stock added after reported first quarter net income declined 11% to $974 million from $1.1 billion a year ago and diluted earnings per share declined 7% to 84 cents from 90 cents a year ago.

Revenue net of interest expenses declined 11% to $7.186 billion from $6.484 billion.

Provisions for losses increased 52% to $881 million, up from $581 million a year ago, reflecting higher write-off and delinquency rates as well as growth in loans outstanding and business volumes.

Revenue in the U.S. card services fell 19% to $523 million from $644 million and revenues in the international card services rose 22% to $1.2 billion and net income gained 30% to $133 million.

American Express stock (AXP: chart) increased 4% or $1.84 to $46.72 in the first fifteen minutes of trading.

The Chubb Corporation, the property and casualty insurance company, fell stock after it said net income in the first quarter of 2008 was $664 million or $1.77 per share, compared to $710 million or $1.71 per share in the same quarter of 2007.

Net written premiums for the first quarter increased 2% to $2.9 billion. The first quarter combined loss and expense ratio was 83.9% in 2008, compared to 83.4% in 2007. The impact of catastrophes accounted for 1.8% of the combined ratio in the first quarter of 2008, compared to 2.5% in the first quarter of 2007.

Chubb stock (CB: chart) fell 4 cents to $53 at the opening.


Baidu.com, Inc., A Chinese-language internet search provider said total revenues in the first quarter of 2008 increased to RMB574.4 million ($81.9 million), representing a 108.4% increase from the same period in 2007.

First quarter of 2008 net income increased to RMB146.6 million ($20.9 million), representing a 71.5% increase from a year ago.