On Tuesday, the Dow component is expected to launch Office 365, which is believed to include a hosted version of its Exchange email product. S&P reiterated a buy rating on Microsoft on Monday ahead of the launch.
"We view this development as a positive, as the company competes with Google (GOOG) in the emerging online productivity suite market," the firm wrote. "We believe revenues from its monthly subscription fees will be incremental at first, but think they will eventually cannibalize sales of Microsoft Office, as customers shift from a desktop version of the software to the cloud computing version."
Two stocks likely to be active in Tuesday's regular session are Nike (NKE - Get Report), which jumped in after-hours action after posting better than expected earnings on strong sales and expense control; and Dow component Kraft Foods (KFT), which can count Nelson Peltz's Trian Fund Management as a shareholder again after the hedge fund disclosed a 12.2 million share stake as of March 31 in the company late Monday.-- Written by Michael Baron in New York.
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