Stock futures are higher following two days of losses as the focus shifts to what role the European Central Bank will play in the debt crisis.
NEW YORK (TheStreet) -- Stock futures were pointing to a higher open following two days of losses in the market as eurozone debt crisis fears subsided somewhat and investors shifted their focus to examining what role the European Central Bank will play in the situation.
Futures for the Dow Jones Industrial Average were rising 95 points, or 92.2 points above fair value, at 11,834. The index has traded down three of the last four trading sessions. Futures for the S&P 500 were rising 12.2 points, or 12.8 points above fair value, at 1227. Futures for the Nasdaq were adding 17.2 points, or 14.4 points above fair value, at 2285.
The potential spread of Europe's debt crisis to the region's core economies has put pressure on leaders to expand the bailout fund as they had planned in a deal last month. However, Germany and France disagree on the role that the European Central Bank should pay. German Chancellor Angela Merkel has reiterated that the ECB cannot act as a lender of last resort.
Earlier Friday, the central bank's chief, Mario Draghi, criticized governments for failing to follow through with their commitments in their so-called comprehensive plan to resolve the debt crisis.
"Where is the implementation of these long-standing decisions?" he said in a speech in Frankfurt. "We should not be waiting any longer.
London's FTSE was losing 0.4%, and Germany's DAX was rising 0.5%. Overnight, Asian stocks closed down for the third week. Japan's Nikkei Average was down 1.23% and Hong Kong's Hang Seng was down 1.73%.
Higher borrowing costs in Spain, France and Italy have deepened debt contagion fears in recent days. Stocks have dropped by more than 1% for two days straight, with the Dow slumping by triple digits Thursday.
"While investors were not necessarily participating on the way up, neither are they participating on the way down," noted Dan Greenhaus, strategist with BTIG.
However, with the S&P 500 breaking below the key technical level of 1225 on Thursday, some investors are concerned that further selling could follow. "If 1225 is not reclaimed, one can imagine bearish sentiment only increasing," added Greenhaus in his research note.
The Conference Board's leading indicators index for October, slated for release at 10 a.m. ET, is expected to rise 0.6%, building on a 0.2% increase in September, according to Reuters. However, the report isn't likely to budge the market.
Salesforce.com(:CRM) swung to a loss in the third quarter and said fourth-quarter earnings could come in below analysts' estimates. The software maker posted a loss of $3.8 million, or 3 cents a share, down from profit a year earlier of $21.1 million, or 15 cents. Adjusted profit in the quarter was 34 cents a share. Analysts were expecting Salesforce to post adjusted earnings of 31 cents.
Gap's(:GPS) third-quarter profit fell 36% as revenue fell 1.8% to $3.58 billion. Gap earned $193 million, or 38 cents a share, down from $303 million, or 48 cents, a year earlier. Analysts were expecting earnings of 36 cents a share on revenue of $3.59 billion.
Eastman Kodak(:EK) may sell Kodak Gallery, its online photo-sharing business, in a continued effort to avert a cash shortfall and potential bankruptcy. The Wall Street Journal reported that private-equity firms and retailers are looking to buy the Kodak business, which currently stores digital photos that can be printed into memorabilia like cards and calendars using Kodak's printing technologies for a fee. The sale could net "hundreds of millions of dollars," anonymous sources told the newspaper.
UBS(:UBS), the Swiss bank, said it will downsize several businesses, slash up to 2,000 jobs and focus on wealth management as part of an overhaul of its investment banking strategy. The company said Thursday it will attempt to transform itself into an organization that is focused, less complex and less capital-intensive.
The December crude oil contract was gaining 72 cents to trade at $99.47 a barrel, after oil prices topped $100 a barrel earlier in the week for the first time since early June. Gold for December delivery was up $9.40 to trade at $1729.60 an ounce on Monday.
The euro was gaining against the dollar, which was slipping 0.84% compared with a basket of currencies. In the bond market, 10-year Treasuries were losing 17/32, pushing the yield to 2.017%.
-- Written by Chao Deng in New York.