NEW YORK (CNN/Money) - Positive results from IBM, Philip Morris and International Paper will compete with weakness in Nokia and a number of bearish analyst comments when trading begins Thursday.

Stock futures pointed to a mixed start for U.S. markets after the Dow Jones industrial average snapped a seven-session losing streak Wednesday.

IBM, the world's biggest supplier of computer hardware and information technology services, posted a sharply lower second-quarter profit late Wednesday. But the earnings were higher than recently reduced forecasts, and company officials said they expect to meet the Wall Street consensus for 2002 earnings.

Shares of IBM (IBM: Research, Estimates), a Dow component, fell 37 cents to $70.25 in pre-market trading Thursday.

Merrill Lynch cut its 2002 estimate for IBM to $3.95 from $4 and 2003 estimate to $4.50 from $4.80 but offered a somewhat upbeat assessment of the company.

"IBM results were good in a difficult environment. The takeaway is that despite services softness, IBM made its numbers and gained shares, espeically in software," the brokerage said in a note.

"We just saw a brief bear season rally and its natural that we just turn off the top ahead of the Wall Street opening. Just as the market doesn't go down in a straight line, it won't go up in a straight line either, and a pause for breath is indicated," said Peter Cogliatti, head trader with Williams de Broe in London.

Dow component and forest products company International Paper (IP: up $0.65 to $40.20, Research, Estimates) reported earnings of 35 cents per share, 15 cents above estimates and better than the 13 cents earned a year earlier. Analysts were expecting earnings of 20 cents per share.

Dow component Philip Morris (MO: Research, Estimates), the tobacco marketer, reported earnings of $1.24 a share, a penny above estimates and higher than the $1.03 earned in the prior year. Shares of the stock gained $1.63 to $44.12 Wednesday.

Finnish cell phone maker Nokia (NOK: Research, Estimates) reported a second-quarter profit Thursday that was mostly in line with recently lowered forecasts, and generally reaffirmed its forecast for second-half income.

"Nokia has been quite volatile in (European) trading today and could be a factor in the U.S. markets," said Merrill Lynch European equity strategist Khuram Chaudry in London.

Shares of the stock lost 37 cents to $13.75 in pre-market trade Thursday.

Merrill Lynch downgraded financial services firm J.P. Morgan (JPM: Research, Estimates) to "buy" from "strong buy" and cut is 2002 estimate to $2.60 from $2.75 and 2003 estimate to $3.30 from $3.55, saying that the downgrade reflects "investment bank results are likely to stay depressedthrough 2003.

J.P. Morgan shares lost 36 cents to $28.14 Wednesday.

Drugmaker Eli Lilly (LLY: Research, Estimates) lost $4.88 to $46.02 in pre-market trade. The company reported a second-quarter profit of 61 cents per share that was in line with estimates, but down from the 76 cents per share earned one year earlier, due to weaker sales of its antidepressant Prozac and manufacturing problems.

Merrill Lynch cut its rating on Charter Communications (CHTR: Research, Estimates), the operator of cable systems, to "neutral" from "strong buy," citing continued accounting woories. Charter gained 51 cents to $4.06 Wednesday.

Credit Suisse First Boston cut its 2002 estimate for business software provider Siebel Systems (SEBL: Research, Estimates) to 28 cents a share from 44 cents a share, and its 2003 estimate to 26 cents from 50 cents a day after the company posted a sharp drop in its second-quarter profit, missing Wall Street estimates. The firm also slashed its price target on the stock to $15 from $26.

The company also announced it was slashing more than 1,100 jobs, citing an ongoing slump in information technology spending.

Siebel Systems lost $1.89 to $9.85 in pre-market trade Thursday.

In addition, data storage maker EMC (EMC: Research, Estimates) reported a loss of a penny a share, down from the five cents earned a year earlier. Analysts expected a two-cent loss. Shares of the stock lost 37 cents to $8.63 Wednesday.

Sources tell CNNfn that media powerhouse AOL Time Warner (AOL: Research, Estimates)'s chief operating officer Robert Pittman will resign soon. In addition, the Washington Post reported Thursday that America Online engaged in questionable revenue reporting practices both before and after the 2001 merger with Time Warner. Shares of AOL Time Warner, the parent of CNN/Money fell 71 cents to $12.40 in pre-market trade Thursday.

CSFB widened its 2002 and 2003 loss per share estimate for Advanced Micro Devices (AMD: Research, Estimates) and kept a "hold" rating on the stock after the semiconductor maker reported a large second-quarter loss, hurt by weak PC sales and increasing competition. Advanced Micro shares shed 7 cents to $9.33 Wednesday.

The brokerage raised its 2002 estimate for automaker Ford Motor (F: Research, Estimates) to 23 cents a share from 13 cents a share and maintained a "buy" rating on the stock. Ford shares gained 2 cents to $12.52 Wednesday.

The Dow has a little momentum going for it, having gained 69 points Wednesday -- although that was well below the peak advance of 250 points early in the session. The Nasdaq composite index finished 22 points higher.

"Generally this kind of volatility precedes a change in direction," Robert Brusca, chief economist with Dupont Direct Financial Holdings, told CNNfn's CNNmoney Morning.

European markets rose in early trading. Asian-Pacific stocks finished mostly higher Thursday, with Tokyo's Nikkei index up nearly 2 percent.

Treasury prices were a little lower in early trading, with the 10-year note yield up at 4.69 percent.

The dollar gained against the euro, which remained just above $1; the dollar was also higher against the yen.

Brent oil futures were down 15 cents to $26.29 a barrel in London, where gold was slightly higher in early trading.

In economic news, the number of Americans filing new claims for unemployment last week fell 26,000 to 379,000. Economists were expecting a decline to 395,000.

After trading begins, the June index of leading economic indicators is scheduled for release by the Conference Board. The index is expected to be unchanged after a 0.4 percent rise in May. Later in the session, the Federal Reserve Bank of Philadelphia's closely watched regional activity index for July is forecast to decline to 18 from 22.2 in June.

Microsoft (MSFT: Research, Estimates) is the star attraction of companies reporting results after trading ends. The No. 1 software maker is expected to show a decline in fiscal fourth-quarter earnings to 42 cents a share from 43 cents a year earlier.

Sun Microsystems (SUNW: Research, Estimates), the No. 1 maker of workstations, is expected to post lower fiscal fourth-quarter earnings of a penny a share versus 4 cents in the prior year.