U.S. stock index futures rose on Friday, indicating the S&P 500 would rebound after two days of losses, boosted by better-than-expected earnings from Hewlett-Packard and positive economic data from Europe.
The S&P 500 has dropped 1.9 percent over the past two sessions, its worst two-day drop since early November, putting the benchmark index on pace for its first weekly decline of the year. The retreat was triggered by minutes from the Federal Reserve's January meeting released earlier in the week which suggested stimulus measures may end earlier than thought.
Still, the index is up more than 5 percent for the year and has held the 1,500 support level.
"When you get a move like that, you are bound to see a pause and the Fed minutes is a good enough reason to at least reassess," said Michael Marrale, head of research, sales and trading at ITG in New York.
"But if, in fact, things do heat up a bit (in the economy), ultimately we are going to see rates go higher and ultimately, that will take money out of bonds and into equities, which is a major backstop for equities."
Hewlett-Packard Co climbed 5.1 percent to $17.97 in premarket trading after the top PC maker's quarterly revenue and forecasts beat analysts' expectations as it continued to cut costs under CEO Meg Whitman's turnaround plan.
The German Ifo business climate indicator for February surged to 107.4, its best one-month rise in more than two years, boosting optimism after Thursday's disappointing PMI data stoked concerns over the euro zone economy.
S&P 500 futures rose 8.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 73 points, and Nasdaq 100 futures added 14.75 points.
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The S&P 500 has dropped 1.9 percent over the past two sessions, its worst two-day drop since early November, putting the benchmark index on pace for its first weekly decline of the year. The retreat was triggered by minutes from the Federal Reserve's January meeting released earlier in the week which suggested stimulus measures may end earlier than thought.
Still, the index is up more than 5 percent for the year and has held the 1,500 support level.
"When you get a move like that, you are bound to see a pause and the Fed minutes is a good enough reason to at least reassess," said Michael Marrale, head of research, sales and trading at ITG in New York.
"But if, in fact, things do heat up a bit (in the economy), ultimately we are going to see rates go higher and ultimately, that will take money out of bonds and into equities, which is a major backstop for equities."
Hewlett-Packard Co climbed 5.1 percent to $17.97 in premarket trading after the top PC maker's quarterly revenue and forecasts beat analysts' expectations as it continued to cut costs under CEO Meg Whitman's turnaround plan.
The German Ifo business climate indicator for February surged to 107.4, its best one-month rise in more than two years, boosting optimism after Thursday's disappointing PMI data stoked concerns over the euro zone economy.
S&P 500 futures rose 8.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 73 points, and Nasdaq 100 futures added 14.75 points.
For more Information Plz log on to www.rpshares.com
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