Microsoft Soars On Blowout Q1

1 The software giant earned 45 cents a share, 29% above a year ago and 6 cents over forecasts. Revenue shot up 27% to $13.76 bil -- $1.2 bil over views. Microsoft cited "robust demand" for its Windows Vista operating system. Microsoft also guided Q2 estimates higher. Its shares jumped 11% in late trading to 7-year highs after rising 2% ahead of results.

Stocks Trim Losses, End Mixed

2 For a fourth straight day, the main indexes battled back from sharp declines. The NYSE composite rose 0.2%, the S&P 500 eased 0.1% while the Dow was flat again. The Nasdaq, hit by weakness in chip and other tech stocks, couldn't rebound as well and fell 0.9%. Volume fell on the Nasdaq, rose on the NYSE

Despite the airline industry's newfound commitment to capacity restraint, rampaging oil prices are still taking a toll on two midsized carriers that operate primarily in the western U.S.

Both Alaska Air and Frontier Airlines reported strong earnings and continuing positive demand trends, but they said high fuel costs will weaken their results in the current quarter.

"My biggest concern going forward is the continued impact of fuel and its impact on demand," Frontier CEO Sean Menke said Friday on a conference call. Even with strength in unit revenue and load factors, Frontier expects to report a pretax loss for the current quarter, he said.

Meanwhile, Alaska said it expects to report a loss for the current quarter, and full-year 2007 results that will not be as good as 2006. "We are showing good momentum," said Chief Financial Officer Brad Tilden on a conference call. "But we are concerned about the economy, high fuel, and what our effort to increase fares does to demand."

On Tuesday, Alaska raised one-way fares by $5 for shorter flights and $10 for longer flights. "We are

NEW YORK (AP) -- Crude futures rose to record levels on Friday, supported by worries over political tensions in the Middle East where the U.S. imposed sanctions on Iran and Turkish troops remained massed at the Iraq board to counter Kurdish rebels.

In addition, the market was unsettled by a dawn attack on an oil vessel off the coast of Nigeria by anti-government militants and suggestions that OPEC oil shipments are not rising as quickly as expected.

"On the back of mounting evidence that the oil balances are tight, and tightening, markets are becoming increasingly uneasy over the prospects of entering the winter high-demand season with inventories at too-low levels," Kevin Norrish, an analyst with Barclays Capital PLC, said in a research note.

While rising more than $1, crude futures retreated from an earlier all time high above $92 as investors sold to lock in profits from the latest multi-day record-setting rally.

Oil futures have risen nearly $7 a barrel, or 8 percent, since the government on Wednesday reported a

LOS ANGELES (AP) -- Countrywide Financial Corp. lost $1.2 billion in the third quarter, but its shares soared Friday after the nation's largest mortgage lender said it expects to be profitable this quarter and next year.

It was Countrywide's first quarterly loss in 25 years.

But the Calabasas, Calif.-based company said it will be profitable in the fourth quarter and in 2008, as it restructures its business to take advantage of the current market.

"We continue to be bullish about the longterm prospects of both Countrywide and our industry," Chairman and Chief Executive Angelo Mozilo said during a conference call with Wall Street analysts.

Shares jumped $4.23, or 32.4 percent, to close at $17.30 on Friday after rising as high as $17.51. The stock is down 64 percent from its 52-week high of $45.26.

The loss for the third-quarter came as mortgage market woes forced Countrywide to set aside millions in