Stocks ready to rocket
Futures sharply higher after JPMorgan's earnings top estimates and oil falls for the 3rd straight day.
NEW YORK (CNNMoney.com) -- Stocks looked set to gain ground Thursday after JPMorgan Chase reported better-than-expected earnings for the second quarter and oil prices fell again.
At 8:32 a.m. ET, Nasdaq and S&P futures were sharply higher, with a comparison to fair value suggesting a strong start for Wall Street.
The price for a barrel of crude fell about $1 in electronic trading. Oil has lost about $11.50, or 8%, since the close Monday, as investors have become concerned that an economic slowdown and record prices will combine to cut consumption.
Stocks soared Wednesday after investors finally got some good news out of the banking sector and oil prices continued their descent. The Dow Jones industrial average ended the session more than 2.5% higher.
Economy Housing starts and permits both rose unexpectedly, but that was because of a jump in apartment construction due to a change in New York City building rules. Starts of single-family homes fell to a 17-year low.
Initial jobless claims rose, but was still much lower than forecast. The other economic reading Thursday is the reading on regional manufacturing due at 10 a.m. ET from the Federal Reserve Bank of Philadelphia.
Banks Investors are keeping a close eye on financial shares as earnings in the bank sector keep trickling in.
JPMorgan Chase (JPM, Fortune 500) reported a 52% decline in net income Thursday, but earnings topped expectations. JPMorgan posted a profit of $2 billion, or 54 cents per share. Analysts polled by Thomson Financial had expected to earnings of 44 cents per share.
Merrill Lynch (MER, Fortune 500) is due to post quarterly results after the market close.
Financial shares got a much-needed boost Wednesday after Wells Fargo (WFC, Fortune 500) reported better-than-expected earnings and raised its dividend.
Techs The earnings onslaught continues with tech heavyweights Google (GOOG, Fortune 500), Microsoft (MSFT, Fortune 500) and IBM (IBM, Fortune 500) scheduled to release their results after the market close.
Online auction site eBay (EBAY, Fortune 500) reported a jump in quarterly profit late Wednesday, but offered a weak outlook for the current period.
Other earnings Continental Airlines (CAL, Fortune 500) swung to a loss due to higher fuel charges. But its loss of 25 cents a share excluding special items was only about half the size forecast by analysts.
Two Dow components, Coca-Cola (KO, Fortune 500) and United Technologies (UTX, Fortune 500), also both topped forecasts with their results. Coke reported a rise in earnings excluding items, although a writedown related to its bottler resulted in a drop in net income. Diversified manufacturer United Technologies reported improved earnings and revenue.
Energy Oil prices continued to fall after a sharp decline over the past two sessions. In electronic trading, crude futures slipped 95 cents to $133.65 a barrel. Oil prices shed more than $10.50 a barrel in the previous two sessions.
Other markets Stocks in Asia rose. Markets in Europe also advanced in morning trading. 
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