Stock futures rallied this morning on hopes that European policymakers are indeed taking the steps to stem the tide of contagion that has been creeping around Europe.
As of 8:00 a.m. ET, Dow Jones Industrial Average futures jumped 99 points to 11,838, S&P 500 futures gained 12.5 points to 1,227 and Nasdaq 100 futures leaped 17 points to 2,285.
U.S. government debt yields moved higher after falling in the prior session. The benchmark 10-year note yields 2.017% from 1.965%.
The euro soared 1.1% to $1.361 on the news as traders hoped Europe would take further steps to ease the crisis. Meanwhile, the U.S. dollar slumped 0.8% against a basket of six world currencies. European blue chips were up 0.52%, shedding earlier losses.
The yield on Spanish and Italian debt ticked lower after the European Central Bank stepped in and bought those countries bonds, according to several media outlets.
The English FTSE 100 fell 0.42% to 5,400 and the German DAX gained 0.41% to 5,874. In Asia, the Japanese Nikkei 225 slid 1.2% to 8,375 and the Chinese Hang Seng sold off by 1.7% to 18,491. The German Dax 30 index has lost 3.9% this week alone.
The benchmark oil contract traded in New York jumped $1.24, or 1.3%, to $100.06 a barrel. Wholesale RBOB gasoline rose 3 cents, or 1.3%, to $2.54 a gallon.
Brent crude was last up 1.3% at $109.62 a barrel, after closing down $3.66 in the previous session.
Investors on Wall Street will be looking forward to paring some losses after the last two sessions saw the Dow, Nasdaq, and S7P all down 3% so far this week.
Stocks to watch today include Foot Locker, Inc. (NYSE:FL), Netflix, Inc. (NASDAQ:NFLX), Bank of America Corp. (NYSE:BAC), Marvell Technology Group Ltd. (NASDAQ:MRVL) and Perry Ellis International, Inc. (NASDAQ:PERY).
Foot Locker, Inc. (NYSE:FL) is trading up 4.2% at $22.74 in pre-market trading today. FL usually trades around 2.7 million shares a day on average. The company announced its third quarter results late yesterday with profits rising 27%. The company has a current market cap of 3.34 billion.
Netflix, Inc. (NASDAQ:NFLX) is up 1.44% at $77.56. NFLX on average trades 9.3 million shares a day. The stock is looking to bounce back today after dipping yesterday with the market. The company has a current market cap of 4.01 billion.
Bank of America Corporation (NYSE:BAC) is up 1.21% at $5.87 in pre-market trading. BAC has traded 2 million shares already before the opening bell. The stock trades 294 million shares on average daily. The company has a current market cap of 58.79 billion.
Marvell Technology Group Ltd. (NASDAQ:MRVL) is up 6.10% at $14.60 in pre-market trading. MRVL released slightly better than expected third quarter results late yesterday despite the Thailand floods having an impact on their business. Revenue was at $950 million which was down 1% from a year ago but higher than analysts expectations of $939 million. MRVL usually trades 14 million shares a day. The company has a current market cap of 8.33 billion.
Perry Ellis International Inc. (NASDAQ:PERY) is up 2.85% in pre-market at $14.09. PERY reported third quarter results and profits fell 9% and the company cut its outlook. Yesteday, PERY fell from $22 to under $14. The stock on average trades 218 thousand shares a day. The company has a current market cap of 209 million.