Mixed reports from some of the big technology companies will have a lingering effect on equity markets this morning.

After the market close, yesterday, Microsoft Corp. reported a surge in its quarterly earnings of 28% to US$2.61 billion. But the firm also says it has fewer new contracts with corporate customers. As a result, Microsoft shares declined in after-hours trading 4.7%.

In Canada, JDS Uniphase reported a significant drop in its quarterly loss to US$28 million. Simultaneously, the company is reporting 24% lower revenue. Its shares closed up 7¢ at $4.96 on the Toronto stock market.

Nortel Networks reported earnings of $179 million in the third quarter. The company will be restating its earning for the last three and a half years. Even though the effect of the restatement will be a reduction in previously reported losses, Nortel’s stock closed at $5.85, down 23¢.

Meanwhile this morning, Wall Street futures are negative following mixed returns on world equities markets yesterday.

There are no major economic news releases out today in either Canada or the United States.

Tokyo’s Nikkei Stock Average of 225 issues gained a mere 0.54 of a point to 10,305.7. On Thursday, the index sunk 5.09% — the biggest single-day point loss in two years.

In Hong Kong, the Hang Seng Index also slid slightly, down 0.81 points, or 0.01%, to 11,736.37. On Thursday, it fell 4.1%, its biggest decline in two years.

In London at midday, the FTSE 100 is down 0.18%. Frankfurt’s DAX has dropped 1.12%, while Paris’s CAC 40 is up 0.06%.

Yesterday, Toronto’s S&P/TSX composite lost 61.04 points to 7,650.20, hauled down by a 4.5% drop in the information technology sector.

The Dow Jones industrial average wandered in and out of positive territory and ended by squeezing out a gain of 14.89 points at 9,613.13. The Nasdaq composite index dropped 12.56 points to 1,885.51. The S&P 500 index edged up 3.41 to 1,033.77.