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The move could give investors confidence Thursday that the mortgage and credit crisis is easing, although a number of major banks and home lenders continue to face difficulties. On Wednesday, Lehman Brothers Holdings Inc. said it would close its BNC Mortgage unit and slash 1,200 jobs; HSBC Holdings PLC and Accredited Home Lenders Holding Co. also said they would eliminate jobs.
U.S. stocks rose Wednesday, lifting the Dow Jones industrials 145 points after BofA, Citigroup Inc., JPMorgan Chase & Co., Deutsche Bank AG, and Wachovia Corp. said they borrowed money from the Federal Reserve to help reassure markets. Borrowing money from the central bank is usually seen as a negative action by banks, but the move was designed to bolster the financial system after the Fed cut its dicount rate last week.
Dow futures expiring in September rose 93, or 0.43 percent, to 13,368, while S&P 500 futures rose 12.90, or 0.88 percent, to 1,481.20. Nasdaq 100 index futures added 14.00, or 0.72 percent, to 1,959.00.
Growing investor confidence was reflected Thursday in big gains overseas markets. Britain's FTSE 100 rose 1.04 percent, Germany's DAX index rose 1.03 percent, and France's CAC-40 rose 1.06 percent. In Asia, Japan's Nikkei stock average rose 2.61 percent. Hong Kong's Hang Seng Index rose 2.77 percent.
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 In economic news, the Commerce Department releases its monthly measure of durable goods orders. Durable goods orders are anticipated to have risen 1.0 percent in July, a slightly smaller jump than the increase in June.
Investors were also looking ahead to Friday's report from the Commerce Department on new home sales and prices.
Earnings reports from retailers including Gap Inc., Aeropostale Inc. and Bebe Stores Inc. will also be closely watched as another snapshot of consumer spending.
Oil prices rose 44 cents to $69.70 in premarket trading on the New York Mercantile Exchange. Crude prices have fallen after it appeared there was no major damage to oil rigs as Hurricane Dean pushed through Mexico.
[Associated Press; by Joe Bel
Bruno]
Copyright 2007 The Associated Press. All rights reserved. This
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