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Pre-Market: Microsoft Finalizes 'Risky' Nokia Deal; Alibaba IPO Could Top $20 Billion

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Earnings season winds down with reports from Amazon, Honda, Ford, and others.

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Stock futures were lower ahead of the week's final trading session as earnings season winds down. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.29% to 16,371. Futures on the S&P 500 (INDEXSP:.INX) were down 0.29% to 1,867.60. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.46% to 3,568.25.

Stocks

Microsoft (NASDAQ:MSFT) has completed what the New York Times calls the software giant's riskiest deal in the company's 39-year history. Nokia (NYSE:NOK) released a statement on Friday morning announcing the sale of its mobile phone business to Microsoft for roughly $7.5 billion. The purchase makes Microsoft the world's second-largest maker of mobile phones, and will expand the company's workforce force by 30,000 employees. The news comes a little over 12 hours after Microsoft reported third-quarter earnings, which came in above expectations at $6.06 billion in net income. Shares of Microsoft were up 1.66% in pre-market trading. Nokia rose 1.92%.

In other earnings news, Amazon (NASDAQ:AMZN) saw revenue grow 23% to nearly $20 billion in the first quarter, up from $16 billion a year ago. Ford (NYSE:F) reported a 39% drop in net profits this morning, thanks in part to $400 million in warranty reserves Ford added to older vehicles in North America. Honda (NYSE:HMC) saw its fiscal fourth-quarter profits more than double from a year ago, although the company forecasts profit growth in FY 2015 will grow slower at 3.6%. Ahead of the opening bell, Amazon fell 5.05% and Ford fell 2.27%.

Bank of America (NYSE:BAC) could be forced to dish out over $13 billion in the settlement of multiple state and federal investigations into the bank's sale of mortgage-backed bonds leading up to the 2008 financial crisis. If the Justice Department wins its case, payments by Bank of America would beat a record payment by JPMorgan Chase (NYSE:JPM) doled out in a similar case last year. Shares of Bank of America were down 1.29% in pre-market trading.

In other settlement news, Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Intel (NASDAQ:INTC), and Adobe (NASDAQ:ADBE) will collectively pay $324 million to settle an antitrust class-action lawsuit that accused the companies of conspiring to suppress salaries in Silicon Valley.

The Wall Street Journal reports that Chinese e-commerce giant Alibaba is considering the expansion of its initial public offering to over $20 billion, making it the largest IPO in US history. The size of the IPO had originally been tagged at $15 to $16 billion.

The Economy

A quiet day for economic indicators will be led by the Purchasing Managers' Index US Services Flash reading at 9:45 a.m.; it will give investors a picture of the private sector services economy. At 9:55 a.m., the Reuters/University of Michigan consumer sentiment index will give an indication of the strength of consumer spending.

Global Markets

Asian stocks declined for a second session overnight. Japan's inflation grew at its fastest pace since 1992, up 2.7% from a year prior. President Obama finished his visit to Japan, but failed to resolve issues with a trade deal that's seen as vital to a regional pact. Meanwhile, Obama is expected to ask European leaders to join the US in imposing new sanctions against Russia. Russia has been downgraded by Standard and Poor's to BBB-, one grade above junk, as Russia began military exercises along its border with Ukraine yesterday. European stocks declined as tensions in the region grew worse.

Twitter: @brokawbrokaw
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