Sales of previously owned homessurge to their highest level in over two years. Amazon.com posts blowout quarterly results and is bullish on holiday shopping season.

-- Sales of previously owned homes surged to their highest level in over two years last month--further evidence the housing market and economy are on the mend.

Lots more earnings news rolling in Friday...

A day after unveiling its new operating system, Windows 7, Microsoft reported quarterly profits and sales that fell from a year ago. But shares shot higher in early trading--the numbers handily beating Street forecasts and the software giant said consumer demand for Windows was strong.

Consumers are putting off buying new appliances in the slow economy. That put a dent in Whirlpool's sales last quarter. But rigorous cost cutting offset the hit to the bottom line and the company raised profit targets for the year.

A cutback in airline travel took a bite out of Honeywell's topline last quarter. The manufacturer, known for its thermostats and control systems, saw revenues plunge by nearly a fith but the drop in profits wasn't nearly as bad as feared.

It was a blowout quarter for Amazon.com after the bell Thursday. The world's largest retailer said despite a still wobbly economy consumers are in fact spending. The Kindle, an electronic reader, is Amazon.com's hottest selling item. Executives predict robust sales for the holiday season.

Jeanne Yurman reports.