NEW YORK (CNN/Money) -
Wall Street will be desperately seeking a way to revive momentum Friday after major U.S. indexes finished sharply lower on Thursday for a second straight session.
After the closing bell Thursday, Electronic Arts (ERTS: Research, Estimates) shares rose after the video game publisher posted higher quarterly earnings on strong sales of games like the new "NFL Street."
Shares of Electronic Arts, the world's largest video game publisher, rose 0.9 percent to $50.40 on INET, up from their close of $49.95 on the Nasdaq.
Electronic Arts reported fourth-quarter earnings of $90 million, or 29 cents a share, up from $9 million, or 3 cents a share, a year earlier. Revenue rose to $598 million from $463 million last year.
Excluding items, earnings per share for the quarter were 25 cents, above Wall Street's average view of 21 cents a share, according to analysts polled by Reuters.
But InterMune Inc. (ITMN: Research, Estimates) shares tumbled after the biotechnology company said it was yanking its earlier sales forecasts for the company and its flagship medicine.
InterMune said that "as a result of changing market dynamics" it was removing the revenue forecast it issued in late January on Actimmune, its drug designed to spur the immune system. InterMune said it was also removing its revenue guidance for the entire company.
Shares of InterMune fell 16.9 percent to $14.97 on the INET electronic brokerage, down from their Nasdaq close of $18.01. It also said the patient referral rate for the drug in the first quarter was "significantly lower than expected."
Business Objects (BOBJ: Research, Estimates) stock fell sharply after the company posted lower quarterly results because of currency exchange losses. Its shares sank 10.6 percent to $25.55 on INET, down from their close of $28.58.
Business Objects posted first-quarter earnings of $3.3 million, or 4 cents a share, down from year-earlier earnings of $8.8 million, or 14 cents a share. The company said its first-quarter results were adversely impacted by about $6.8 million of non-operating currency exchange losses.
Gateway Inc. (GTW: Research, Estimates) reported a narrower loss after the closing Thursday amid cost cutting related to a transformation that calls for the closure of its retail stores, and the company said it would cut jobs.
The PC maker, which in March bought profitable PC maker eMachines, said it had a first-quarter net loss of $165.5 million, or 49 cents a share, compared with a year-earlier loss of $200.5 million, or 62 cents a share.
Revenue at Gateway, which last had a net profit in the fourth quarter of 2001, was $868.3 million, down from the peak fourth quarter, but up from $844.5 million a year ago.
The company called the results "preliminary" and "subject to change," as it works to finalize certain tax-related issues.
Gateway also plans to cut another 1,500 jobs, or about 40 percent of remaining work force, about a month after similar 40 percent cut.
McKesson Corp. (MCK: Research, Estimates) posted higher fourth-quarter profits from strong pharmaceutical distribution revenue growth.
The drug wholesaler said net income rose to $214.2 million, or 73 cents per share, from $179.0 million, or 61 cents, a year ago.
Analysts expected the San Francisco-based company to earn between 51 and 71 cents per share for the fourth quarter ended March 31 with a mean estimate of 65 cents, according to Reuters Research, a unit of Reuters Group.
Some important economic data are scheduled for release early Friday and that will include personal income and spending, consumer sentiment and manufacturing in the Chicago area.
Earnings reports from Archer-Daniels (ADM: Research, Estimates), Cigna (CI: Research, Estimates), Taiwan Semiconductor (TSM: Research, Estimates) and Procter & Gamble (PG: Research, Estimates) are also due early during the day.
-- from staff and wire reports
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