MW: U.S. futures extend gains after Wells Fargo report
U.S. stock futures rose Thursday ahead of a three-day weekend, as an early release of profits from Wells Fargo added to the optimism around the financial sector.
S&P 500 futures rose 14 points to 836.60 and Nasdaq 100 futures rose 15.75 points to 1,314.20. Dow industrial futures rose 106 points.
Futures had already been stronger but took a big bounce higher after the Wells Fargo results hit.
The San Francisco bank said it earned $3 billion, or 55 cents a share, in the first quarter - well ahead of market estimates. Revenue rose an estimated 16% to $20 billion.
Wells Fargo shares jumped 20%.
Financials had already been strong as The New York Times quoted sources saying all 19 banks undergoing stress tests will pass them.
The retail sector also is in focus as firms announce same-store sales results for March.
Wal-Mart Stores reported worse-than-forecast same-stores sales growth for the period of 1.4% but said first-quarter earnings from continuing operations would be toward the high end of expectations. Wal-Mart shares fell 3.8%.
Of some larger names, Costco same-store sales fell 5% while Limited Brands sales dropped 9%.
Shares of Buckle rose 4% as same-store sales rose 15%.
Elsewhere, Textron surged in pre-market trade, up 78%, as the Kuwait newspaper Al-Watan said a consortium is offering $21 a share.
Overseas, Japanese stocks saw a strong rally, with the Nikkei 225 up 3.7% on improving core machinery-orders figures as well as expectations of a $154 billion stimulus plan.
South Korea's Kospi rallied 4.3% and Taiwan's Taiex rose 4.1%.
Led by banks, stocks in Europe edged higher, with the pan-European Dow Jones Stoxx 600 up 1.2%.
ING rallied in Amsterdam after announcing it planned to sell up to 8 billion euros of assets, up from as little as 2 billion euros.
Oil futures advanced in electronic trade, trading around the $51 a barrel market.
Data on the trade deficit for February and import prices for March will be released, as well as weekly jobless claims.
U.S. stocks closed higher Wednesday after a deal in the house-building segment and a report that life insurers would get access to federal government bailout money. The Dow Jones Industrial Average rose 47 points, the Nasdaq Composite added 29 points and the S&P 500 rose 9 points.
