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 Since the stock market started tumbling in late July on fears that problems in mortgage and corporate lending would lead to a credit freeze and hurt the economy, the Fed has injected tens of billions of dollars into the banking system and lowered its discount rate
-- the rate it charges commercial banks. But the Fed hasn't yet said it will lower the benchmark federal funds rate, and Wall Street's uncertainty over what the central bank will do next has kept the markets volatile.
Investors were optimistic on Friday about stocks, though, especially with President Bush expected to announce plans to help borrowers hit by the housing slump to keep their homes.
Dow Jones industrials futures expiring in September rose 120, or 0.89 percent, to 13,399, while Standard & Poor's 500 index futures rose 16.60, or 1.14 percent, to 1,478.20. Nasdaq 100 index futures rose 22.25, or 1.13 percent, to 1,997.00.
Before Bernanke and Bush speak, investors will be digesting data that could help them figure out how much the housing slump and credit problems are dragging on the broader economy.
At 8:30 a.m. EDT, the Commerce Department reports on personal income and spending, and the core personal consumption expenditures deflator
-- one of the Fed's preferred gauges of inflation. Personal income and spending are expected to edge up by 0.3 percent and 0.4 percent, respectively, and year-over-year core PCE is expected to edge up to 2.0 percent, at the top of the Fed's comfort range.
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 Later in the morning, Chicago purchasing managers release their monthly index of Midwest manufacturing, a precursor to next week's national manufacturing index from the Institute for Supply Management. Also, the University of Michigan will report on August consumer sentiment.
In corporate news, Dell Inc. reported after the market closed Thursday that its second-quarter profit soared 46 percent.
The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude rose 39 cents to $73.75 a barrel in premarket electronic trading on the New York Mercantile Exchange.
In Asian trading, Japan's Nikkei stock average surged 2.57 percent, Hong Kong's key index jumped 2.13 percent, and China's Shanghai Composite Index rose 0.99 percent.
In Europe, Britain's FTSE 100 rose 0.94 percent, Germany's DAX index rose 0.91 percent, and France's CAC-40 rose 1.24 percent.
The U.S. bond market will be closing early at 2 p.m. EDT ahead of the holiday weekend.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; by Madlen Read]
Copyright 2007 The Associated Press. All rights reserved. This
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