Dell, AIG, AT&T, Delta, Walgreen, Gap in focus

Pre-open moves

With global markets remaining volatile, weaker U.S. share trading looks likely. Dell shares are likely to struggle after earnings and a downgrade, though AIG could be a Dow standout.

Global markets

Markets in China and Hong Kong ended modestly higher. Japan's Nikkei fell as exporters were hurt by the strength of the yen. Trading in Europe was volatile. This week's share slump proved a boon for exchanges, however, with trading volumes at Euronext and Deutsche Boerse setting highs.

See Global Markets page for Europe, U.K. and Asia markets.

Broker action

Dell Inc. (NasdaqGS: - ) was downgraded Needham to hold from buy, citing the PC maker's disappointing results and caution from the company that a turnaround will take several quarters.

AT&T Inc. (NYSE: - ) was upgraded by Stifel Nicolaus to hold from sell, citing potential near-term margin expansion and improving enterprise and regional business trends.

J.P. Morgan downgraded Nasdaq Stock Market (NasdaqGS: - ) to neutral from overweight, citing price cuts by the exchange.

Southwest Airlines Co. (NYSE: - ) was upgraded to overweight from neutral at Prudential Equity in a valuation call.

See Upgrades/Downgrades: The Internet's most complete source for analyst comment.

Breaking news: See Market Pulse for all the latest

Dell Inc. shares fell in pre-market action after the personal-computer giant reported a fiscal fourth-quarter profit that fell 33% from a year ago due to falling sales and increased competition. Dell said in a statement that earnings and gross margins would be under pressure for several quarters.
Dean Foods (NYSE: - ) said it plans to pay a special one-time cash dividend of $15 per share, returning an estimated $2 billion to its stockholders. The company also said it still expects adjusted earnings of 44 to 46 cents a share for the first quarter. For the full year, reflecting increased interest expenses, it now sees a profit of $1.72 to $1.78 a share. Analysts expect $2.37 a share.
American International Group (NYSE: - ) reported a jump in fourth-quarter net income late Thursday and unveiled a big share buyback and new dividend plan.
Delta Air Lines Inc. (Other OTC: - ) said its loss in January was $109 million, compared with a $300 million loss a year earlier. Delta's consolidated passenger unit revenue rose 3.7% in January. The Atlanta-based airline said its monthly operating expenses "remained essentially flat" despite a capacity increase of 2.9%. Delta is currently in Chapter 11 reorganization.
Ford Motor Co. (NYSE: - ) agreed to sell its Automobile Protection Corp. unit to Trident IV L.P., a private-equity fund managed by Stone Point Capital LLC. Financial terms weren't disclosed.
Gap Inc. (NYSE: - ) turned in a 35% drop in fourth-quarter profit, capping a year of sales turmoil and executive shake ups, and forecast lower fiscal-year results as it grapples with its future and folds the Forth & Towne concept.
Walgreen Co. (NYSE: - ) said its same-store sales rose 8.6% in February. Total sales increased 13.4% to $4.3 billion. Total pharmacy sales increased 14.3% in February, while comparable pharmacy sales jumped 10%.

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