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Wall Street Nurtures Spanish Bailout Hopes


After seeing lackluster sentiment in recent sessions, Wall Street seems to have shed off some of its caution and has begun to cherish hopes concerning the resolution of the eurozone debt crisis. The major U.S. index futures point to a modestly higher opening on Friday. On a day lacking any major market moving catalysts, reports that Spain would seek as well as receive a bailout has allayed some of the fears concerning further aggravation of the region's debt crisis. This has sent the euro higher along with other risky bets.

As of 6:15 am ET, the Dow futures are moving up 34 points, the S&P 500 futures are adding 2.70 points and the Nasdaq 100 futures are gaining 5.75 points.

U.S. stocks closed Thursday's session on a mixed note amid the release of mostly disappointing economic data.

On the economic front, Atlanta Federal Reserve Bank President Dennis Lockhart speaks to the Atlanta Institute of Internal Auditors on "U.S. Economic Outlook and Monetary Policy" at 12:40 pm ET.

In corporate news, Oracle (ORCL) reported first quarter non-GAAP earnings of 53 cents per share, up 11 percent, on non-GAAP revenues of $8.2 billion. The earnings came in line, while the revenues were below expectations.

Cintas (CTAS) reported first quarter earnings that exceeded estimates, while its revenues were shy of estimates. The company reiterated its 2013 revenue guidance in the range of $4.25 billion to $4.35 billion, while it raised its earnings per share guidance to $2.50-$2.58 per share from $2.47-$2.55 per share. The guidance surrounded the consensus estimate.

Analog Devices (ADI) announced that Jerry Fishman will continue to be the CEO following the expiration of his current contract on October 28, 2012. The company announced the promotion of Vincent Roche as president.

TIBCO Software (TIBX) reported third quarter non-GAAP earnings of 27 cents per share compared with 23 cents per share in the year-ago period. Revenues rose 11 percent to $255 million. The earnings came in line, while the revenues missed estimates.

FLIR Systems (FLIR) said it has been awarded a firm fixed price contract from the Defense Logistics Agency Aviation for values at $26.3 million.

St. Jude (STJ) announced that it has received European CE Mark Approval of Eon Mini Neurostimulator to treat chronic migraine.

Amgen (AMGN) said the FDA has approved a new indication for Prolia as a treatment to increase bone mass in men with osteoporosis at high risk for fracture.

McDonald's (MCD) announced a 10 percent increase in its quarterly dividend to 77 cents per share. Texas Instruments (TXN) also announced a 24 percent increase in its quarterly dividend. Lennox (LII) said its board approved an 11 percent increase in its quarterly dividend to 18 cents per share.

Halliburton (HAL) announced that it has appointed Jeff Miller as COO.

Most Asian stocks advanced despite the underlying caution concerning the global economy in the wake of recent soft data points.

Japan's Nikkei 225 average hovered in positive territory throughout the session amid volatility before closing up 23.02 points or 0.25 percent at 9,110. Utility, construction, retail, pharma, bank, telecom and resource stocks advanced strongly. On the other hand, export stocks moved to the downside.

Australia's All Ordinaries opened little changed and rose steadily in the morning before consolidating their gains. At the close of trading, the index was up 11 points or 0.25 percent at 4,431. Most sectors, barring utilities and material stocks, saw modest buying interest.

Hong Kong's Hang Seng closed at 20,740, down 149.21 points or 0.72 percent.

On the economic front, Conference Board's leading indicators index for Australia remained unchanged at 124.9 in July following a 0.5 percent drop in June. The coincident index edged up 0.1 percent.

European stocks are rebounding, as risk appetite re-emerged on hopes that a Spanish bailout may materialize shortly.

In corporate news, Richemont announced a deal to buy U.S. luxury apparel company Peter Millar. Germany's Adidas confirmed its full year guidance as well as its long-term financial target. That said, the company trimmed its sales outlook for the Reebok brand for 2015.

by RTTNews Staff Writer

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