U.S. futures signal strong open; Dow futures jump 1.4%

Stock values increasing and decreasing in value Credit: Shutterstock photo

Forexpros - U.S. stock futures pointed to a broadly higher open on Monday, rebounding from Friday's selloff as markets looked ahead to a much-anticipated speech by Federal Reserve Chairman Ben Bernanke on Friday for any hints regarding further stimulus measures.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a strong gain of 1.4%, the S&P 500 futures climbed 1.6%, while the Nasdaq 100 futures jumped 1.75%.

With no major economic data due Monday and only three companies reporting earnings results, markets were looking ahead to the Federal Reserve's annual policy retreat in Jackson Hole, Wyoming later in the week, at which Fed Chief Bernanke could announce additional measures to support the U.S. economy.

Meanwhile, shares in the beaten-up financial sector posted strong gains in pre-market trade, tracking their European counterparts higher.

The largest U.S. lender Bank of America saw shares climb 3%, Citigroup shares traded 2.7% higher, JP Morgan Chase added 1.6%, while U.S.-listed shares of Deutsche Bank rose 2.4%.

Oil producers were also higher, as Libya's six-month civil war appeared close to an end, triggering speculation oil exports from the OPEC member would resume in the near-term.

U.S.-listed shares of the largest international oil company operating in Libya, Italy's Eni SpA soared 8.1%, oil giant British Petroleum saw shares add 3.1%, while oilfield-service providers Halliburton and Schlumberger Limited advanced 2.8% and 1.9% respectively.

The second largest U.S. home improvement retailer Lowe's saw shares climb 2.8% after announcing plans to buy back nearly USD5 billion of common stock.

Shares in technology bellwether Hewlett-Packard gained 1.5% amid unconfirmed rumors Oracle was looking into purchasing the company. HP shares plunged 20% on Friday as the company's downbeat earnings results prompted it to slash its full-year outlook.

Across the Atlantic, European stock markets were up sharply as shares in the financial and energy sectors led gains. The EURO STOXX 50 surged 2.1%, France's CAC 40 rallied 2.25%, Germany's DAX climbed 1.3%, while Britain's FTSE 100 rose 2%.

During the Asian trading session, Hong Kong's Hang Seng Index added 0.45%, while Japan's Nikkei 225 Index declined 1.05%, as shares in Japanese exporters came under pressure from a strong yen.

Later in the day, the U.S. was to publish a report on mortgage delinquencies.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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