The optimism on Wall Street continues to gain ground, as indicated by the index futures, which point to a higher open on Wall Street on Friday. European stocks are mostly higher, helped by positive earnings released by some blue chip companies. Traders now expect the upcoming economic releases to confirm the recovery's strength, in line with the trend relayed by recent data points. The new home sales report and a consumer sentiment reading to be released shortly after the markets open my offer further clarity.
As of 6:30 am ET, the Dow futures are rising 25 points, the S&P 500 futures are adding 3.40 points and the Nasdaq 100 futures are moving up 4.75 points.
After seeing some weakness in early trading on Thursday, U.S. stocks recovered and ended moderately higher, as macroeconomic data continued to lend support despite the mixed earnings reports.
On the economic front, the Reuters and the University of Michigan's final report on the consumer sentiment index for February is scheduled to be released at 9:55 am ET. The consumer sentiment index is expected to be upwardly revised to 73 from the mid-month reading of 72.5.
The Commerce Department is due to release its new home sales report for January at 10 am ET. The consensus estimate calls for new homes sales of 315,000 following a reading of 307,000 for December.
In corporate news, AIG (AIG) reported fourth quarter operating income of 82 cents per share compared to a loss of $15.99 per share last year. Analysts had expected earnings of 82 cents per share for the quarter.
Citigroup (C) said it has sold 145.3 million shares or its 9.85 percent stake in India's HDFC, with the total proceeds estimated at $1.9 billion at the current exchange rate. Citi will realize an after-tax gain of $722 million.
Newmont Mining (NEM) reported 2011 quarter adjusted income from continuing operations of $4.39 per share compared with $3.85 per share last year. The earnings were below estimates. Revenues rose to $10.36 billion, in line with estimates.
BlackRock (BLK) announced an increase in its stock repurchase program by 5 million share.
HealthSouth's (HLS) fourth quarter results exceeded estimates.Nordson (NDSN) reported first quarter results that exceeded estimates, while its second quarter guidance was fairly positive.
Public Storage (PSA) reported fourth quarter adjusted funds from operations of $1.66 per share, up 14.5 percent. The earnings missed estimates. Meanwhile, the company raised its quarterly dividend by 16 percent to $1.10 per share.
Gap (GPS) said its board has approved a new $1 billion stock buyback program and also a 1 percent increase in its annual dividend to 45 cents per share. Separately, the company reported fourth quarter earnings of 44 cents per share on sales of $4.3 billion. The earnings exceeded estimates, while the revenues were in line. For 2012, the company expects earnings per share of $1.75-$1.80, surrounding the consensus estimate of $1.79 per share.
Salesforce.com (CRM) reported fourth quarter non-GAAP earnings of 43 cents per share on revenues of $632 million. The results exceeded estimates. The company raised its 2013 revenue guidance above the consensus estimate.
Most Asian markets closed higher, tracking the positive lead from Wall Street overnight. The markets in the region also cheered the Greek parliament's approval of a debt swap deal with its private sector creditors, helping the beleaguered nation wipe off some 107 billion euros in debt.
After seeing volatility, Japan's Nikkei 225 average advanced in the afternoon, settling up 51.81 points or 0.54 percent at 9,647. Export stocks capitalized on the still-weak yen.
Australia's All Ordinaries ended up 21.50 points or 0.49 percent at 4,389 and Hong Kong's Hang Seng added 25.87 points or 0.12 percent before closing at 21,407.
The major European averages are also mostly higher, with the German DAX Index and the French CAC 40 Index rising 0.79 percent and 0.61 percent, respectively, while the U.K.'s FTSE 100 is up modestly.
In corporate news, SAP (SAP) said it would recommend to its supervisory board to propose an 83 percent increase in its dividend to 1.10 euros per share. Volkswagen reported a 15.41 billion euro-profit for 2011 compared to 6.84 billion euros last year, as sales rose about 26 percent to 159.34 billion euros.
German chemical maker BASF reported higher 2012 profits and revenues, helped by strong showing by its emerging markets segment.
Lloyds reported a loss of for 2.81 billion pounds for 2011, which however was in line with expectations.
Spanish telecom operator Telefonica reported a drop in its 2011 earning and also said it expects its profit margin to decline in 2012.
Germany confirmed its initial fourth quarter GDP reading, which showed a 0.2 percent sequential decline. The fourth quarter expansion by the U.K. economy was also confirmed at 0.2 percent.
For comments and feedback: editorial@rttnews.com