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U.S. futures higher as risk sentiment recovers; Dow Jones up 1.01%

Published 10/12/2011, 06:29 AM
Updated 10/12/2011, 06:29 AM

Investing.com - U.S. stock futures pointed to a higher open on Wednesday, shadowing European stocks as investor confidence strengthened amid optimism over signs of progress in dealing with the debt crisis in the euro zone.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 1.01%, S&P 500 futures signaled a 1.02% surge, while the Nasdaq 100 futures indicated a 1.04% jump.

On Tuesday, officials from the European Union, International Monetary Fund and European Central Bank said Greece was likely to receive its next bailout package next month and said Athens has made “important progress” in fiscal consolidation.

Meanwhile Slovakia's parliament rejected the plan to expand the power of the euro zone's bailout fund. The outgoing government said it still hoped to pass the measure by the end of the week.

The biggest U.S. aluminum producer, Alcoa, was up 2.08% after kicking-off earnings season. The company reported earnings of USD172 million, or 15 cents per share in the third quarter.

Shares in Research In Motion extended the previous day's gains, soaring 5.08% after Jaguar Financial said on Tuesday that holders of at least 8% of the Blackberry maker's stock should back its call for a sale or a corporate shake-up.

Software giants Apple and Microsoft saw shares climb 2.95% and 0.22% respectively, while streaming media corporation Netflix remained lower, with shares plummeting 2.72% after abandoning a plan to offer a separate service for DVDs under the Qwikster name earlier in the week.

U.S. lenders were also up, tracking European counterparts with Goldman Sachs rising 0.58%, Bank of America climbing 1.43% and Citigroup soaring 5.10%.

On the downside, telecom companies posted sharp losses, with AT&T tumbling 1.37% and Verizon Communications plunging 1.08%, while shares in Qualcomm Inc. dropped 0.84%.

Other stocks in focus included JP Morgan and Google, which were due to report earnings later in the week.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 soared 1.53%, France’s CAC 40 jumped 1.55%, Germany's DAX climbed 1.39%, while Britain's FTSE 100 posted a.0.56% increase.

During the Asian trading session, Hong Kong's Hang Seng Index climbed 1.2%, while Japan’s Nikkei 225 Index slumped 0.4%.

Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. The U.S. was to publish the minutes of the Federal Reserve’s most recent policy-setting meeting.

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