Stock futures rise on Greece rescue hopes

[February 11, 2010]  NEW YORK (AP) -- Stock futures rose Thursday as investors' attention remains focused on a potential rescue package for Greece.

European markets rose as expectations grew that European leaders would soon announce a plan to support the debt-burdened country.

Stocks around the world have been shaken in recent weeks by concerns that debt trouble in countries like Greece, Portugal and Spain would unravel a budding global economic recovery. There is concern that Greece's troubles will spread throughout the 16-nation euro zone and cause problems elsewhere.

Investors are growing confident, however, that stronger countries in Europe like Germany and France will step in to provide some sort of support to keep Greece from defaulting on its obligations. Still, no firm plans have been announced.

European Union leaders and Jean-Claude Trichet, head of the European Central Bank, are meeting Thursday to discuss the economic health of countries that use the euro. Greece's troubles are expected to be a main topic of discussion.

Ahead of the opening bell, Dow Jones industrial average futures rose 39, or 0.4 percent, to 10,024. Standard & Poor's 500 index futures rose 4.90, or 0.5 percent, to 1,068.20, while Nasdaq 100 index futures rose 1.25, or 0.1 percent, to 1,746.00.

Investors will also be closely watching Labor Department's weekly unemployment report. Economists polled by Thomson Reuters forecast the number of people applying for unemployment benefits fell last week by 15,000 to a seasonally adjusted 465,000.

First-time claims rose in four of the previous five weeks, putting investors on edge about whether an economic recovery will be sustainable.

High unemployment has been considered one of the biggest obstacles to strong growth in the country.

Two other reports scheduled to be released Thursday were postponed because of two major snowstorms that have shut down the federal government in recent days. The Commerce Department will delay, at least for one day, reports on monthly retail sales and business inventories.

Stocks fell modestly Wednesday, erasing steep early morning losses as investors became more comfortable with Federal Reserve Chairman Ben Bernanke's plan to unwind stimulus measures the central bank launched to support the economy.

Bernanke said the Fed will likely start to tighten credit by increasing the interest rate it pays on deposits with the central bank.

The Dow ended the day 20 points, or 0.2 percent, lower after falling nearly 100 points early in the session. The S&P 500 fell 0.2 percent and the Nasdaq composite index dipped 0.1 percent.

Meanwhile, bond prices rose modestly Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.69 percent compared with late Wednesday.

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

Overseas, Britain's FTSE 100 rose 0.9 percent, Germany's DAX index rose 0.3 percent, and France's CAC-40 rose 0.5 percent. Japanese markets were closed for a national holiday.

[Associated Press; By STEPHEN BERNARD]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.