Microsoft is expected to report the first annual sales dip in
its history this week.
But the firm's second quarter financial results, due on
Thursday, are unlikely to affect investors because of renewed
optimism in the technology sector, according to
Reuters.
Last week,
technology companies rallied on the US stock markets, triggered
by strong financial results from computer chip makers Intel and
Altera.
Intel's shares jumped 7.3% and Altera's shares rose 4.2% after
reporting better than expected revenues and profits. The strong
results also benefited the share price of Intel rival AMD by 8.7%
and Hewlett-Packard by 4.5%.
Analysts expect Microsoft to ride the crest of the new wave of
optimism supported by positive responses to the firm's new Bing
online search service and forthcoming Windows 7 operating system
and Office 2010 productivity suite.
Interest in Microsoft shares could also be boosted if the firm
finally strikes an internet search and online advertising deal with
Yahoo.
After months of intermittent negotiations, Yahoo board member
Carl Icahn and others say the
talks have intensified and a deal could be close.