Stock futures rise on strong JPMorgan earnings

[July 16, 2009]  NEW YORK (AP) -- After rallying on better-than-expected earnings throughout the week, investors are modestly moving into the market Thursday after JPMorgan Chase & Co.'s earnings were the latest to beat estimates.

Stock futures were slightly higher as some of the excitement over JPMorgan's results were being tempered by concerns that one of the nation's largest lenders to small business could collapse.

Overseas markets were higher.

JPMorgan said its investment banking business spurred record revenue. Its results come two days after earnings at another banking giant, Goldman Sachs Group Inc., also topped expectations.

The strong earnings from the banks has provided fuel to beliefs the economy is rebounding. The results also show that many banks have quickly recovered from the collapse of credit markets last fall that led to the failure of Lehman Brothers.

However, not all financial firms are enjoying success.

Late Wednesday, small and midsize business lender CIT Group Inc. said negotiations with regulators about a possible rescue broke off after days of talks. That raised expectations that the New York-based financial firm could file for bankruptcy protection.

CIT's fate has tempered some of the excitement over upbeat earnings reports and outlooks from companies like JPMorgan and chipmaker Intel Corp.

Ahead of the opening bell, Dow Jones industrial average futures rose 13, or 0.2 percent, to 8,556. Standard & Poor's 500 index futures rose 0.30, or 0.03 percent, to 927.50, while Nasdaq 100 index futures fell 1.25, or 0.1 percent, to 1,496.

Thursday brings even more earnings reports that could provide additional signs into how the economy is faring. Internet powerhouse Google Inc. and computer maker International Business Machines Corp. both report earnings after the market closes.

Investors will also get a weekly jobless claims report Thursday morning. The Labor Department is expected to say new unemployment insurance claims last week grew by 10,000 to a seasonally adjusted 575,000, according to economists polled by Thomson Reuters.

The report is due out at 8:30 a.m. EDT.

The market soared Wednesday as investors believed better-than-expected earnings reports from companies like chipmaker Intel showed the economy might be in better shape than thought.

All the major indexes rose about 3 percent, and the Dow jumped 257 points for its biggest one-day gain in nearly four months.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.58 percent from 3.62 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.17 percent late Wednesday.

The dollar mostly rose against other major currencies, while gold prices fell

Overseas, Japan's Nikkei stock average rose 0.8 percent. In afternoon trading, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 1 percent, and France's CAC-40 gained 1.2 percent.

[Associated Press; By STEPHEN BERNARD]

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