Wall Street On Course For Rebound

(RTTNews) - Early indications suggest that Wall Street stocks may see a solid rebound at the open on Friday following yesterday's retreat. Asian stocks ended mostly lower earlier in the global trading day, while the European markets are seeing a cautious rebound. The mood in the domestic markets may also hinge on an earnings report from U.S. bank Wells Fargo and comments by Federal Reserve officials at a panel discussion in Jackson Hole. The mitigation in risk aversion is also reflected by gold prices, which are currently retreating.

At 6:15 am ET, the Dow futures are rising 36 points, the S&P 500 futures are moving up 4.25 points and the Nasdaq 100 futures are adding 10.50 points.

U.S. stocks reversed course on Thursday, although they closed well off the lows of the session.

On the economic front, Philadelphia Federal Reserve Bank President Charles Plosser is scheduled to moderate on entrepreneurial issues at the Rocky Mountain Economic Summit in Jackson Hole, Wyoming at 11:15 am ET. Chicago Federal Reserve Bank President Charles Evans and Atlanta Federal Reserve Bank President Dennis Lockhart are due to participate in a panel at Rocky Mountain Economic Summit in Jackson Hole, Wyoming at 2 pm ET.

The Treasury is scheduled to release its monthly budgetary report for June at 2 pm ET. The report is expected to show a surplus of $86.5 billion compared to a deficit of $130 billion in the previous month.

In corporate news, Whirlpool (WHR) announced a deal to acquire majority interest in European domestic appliance manufacturer Indesit Company from Fineldo for a total purchase price of 758 million euros. The deal is expected to close by the end of 2014.

In its interim update, Chevron (CVX) said it expects its second quarter results to be higher than that in the first quarter, helped by gains on asset sales and the absence of impairments in the second quarter.

Infosys (INFY) reported an increase in its first quarter profits and sales that beat estimates. The company reaffirmed its 7-9 percent revenue growth guidance for fiscal year ending March 2015.

Gap (GPS) reported that its June sales rose to $1.54 billion from $1.53 billion last year, while its comparable store sales fell 2 percent compared to a 7 percent increase last year.

VOXX International (VOXX) reported first quarter net income of 2 cents per share on net sales of $186.9 million. The results trailed estimates.

Occidental Petroleum (OXY) announced the appointment of Todd Stevens as the president and CEO and William Albrecht as the executive Chairman of its subsidiary California Resources. The company is planning to spin-off California Resources as a separately traded company subject to market conditions and regulatory approvals.

The Asian markets closed mixed, as risk aversion triggered by fears of the banking crisis in Portugal kept sentiment subdued in the region. The Japanese market retreated as the yen remained firm and the Indonesian market fell sharply, while the Australian and Chinese markets bucked the downtrend with a moderate advance.

The Nikkei 225 average languished below the unchanged line throughout the session before closing down 52.43 points or 0.34 percent at 15,164. Export stocks moved to the downside, while real estate, electric utility and financial stocks also saw weakness.

Hong Kong's Hang Seng Index ended at 23,234, down 5.54 points or 0.02 percent, while China's Shanghai Composite Index closed 8.62 points or 0.42 percent at 2,047.

Australia's All Ordinaries ignored a weak start and moved decisively into positive territory in late morning trading. Thereafter, the average held above the unchanged line, closing up 20.30 points or 0.37 percent at 5,475. Most sectors advanced, with the exception of consumer discretionary and real estate stocks.

On the economic front, a report released by the Australian Bureau of Statistics showed that the total number of home loans in Australia remained almost unchanged in May compared to the previous month following a 0.2 percent drop in April. Economists expected a 0.5 percent drop for the month.

European stocks are rebounding from the previous session's steep declines and are currently trading modestly higher.

Revised estimates released by the German Federal Statistical Office showed that annual inflation in Germany rose at an unrevised rate of 1 percent in June, while on a month-over-month basis, consumer prices were up 0.4 percent. The annual and monthly comparisons of the harmonized index of consumer prices were also left unrevised at a 1 percent and a 0.4 percent increase, respectively.

The Bank of France reported that French current account deficit widened to 3.1 billion euros in May from 2.3 billion euros in April, with the goods trade deficit widening and services trade surplus declining.

The U.K. Office for National Statistics reported that U.K. construction output fell 1.1 percent month-over-month in May, belying expectations for a 0.9 percent increase. The annual growth of 3.5 percent also trailed expectations.