Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Stocks set for a bounce

By CNNMoney.com staff


NEW YORK (CNNMoney.com) -- U.S. stocks were set to rise at Thursday's open as investors set their sights on recouping some of the losses from the previous session's selloff.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher.

Futures measure current index values against perceived future performance.

Wall Street took a dive Wednesday after Federal Reserve Chairman Ben Bernanke told Congress the outlook for the economy was "unusually uncertain."

But investors appeared more positive Thursday, taking the view that the selling was overdone.

"The strong selloff at the end of the day yesterday is bringing the bargain hunters in this morning," said David Jones, chief market strategist at IG Markets. "But an air of caution remains, and the big concern is still that the economic recovery is more fragile than we first thought, so investors will be looking for reassurance today."

Companies: AmeriCredit (ACF) surged 23% in pre-market trading after General Motors said it will buy the automobile financing company for $3.5 billion.

Shares of Xerox (XRX, Fortune 500) climbed more than 6% before the market open after the copier maker reported second-quarter earnings that topped forecasts.

Companies due to report their latest financial results after Thursday's close includeMicrosoft (MSFT, Fortune 500) and American Express (AXP, Fortune 500).

Economy: The Labor Department said 464,000 Americans filed for their first week of unemployment insurance last week, up 37,000 from the previous week. Economists were expecting the 445,000 initial claims, according to a consensus estimate from Briefing.com.

A reading on existing home sales from the National Association of Realtors is due after the market open. Sales are expected to have fallen to a seasonally adjusted annual rate of 5.09 million units in June, down from a 5.66 million unit rate in May.

An index of leading economic indicators, viewed as a gauge of the economy's future performance, is also on tap. Economists expect the index to have slipped 0.4% in June after rising 0.4% in May.

World markets: European markets got off to a positive start. Britain's FTSE 100 rose 1%, France's CAC 40 jumped 1.8% and the DAX in Germany gained 1.6% in morning trading.

In Asia, Japan's benchmark Nikkei index lost 0.6%. But the Shanghai Composite and Hang Seng both ended the session higher.

Currencies and commodities: The dollar was down against the euro, the British pound and the Japanese yen.

U.S. light crude oil for September delivery rose 33 cents to $76.89 a barrel.

COMEX gold's August contract fell $4.70 to $1,187.10 per ounce.

Bonds: Treasury prices fell, pushing the yield on the 10-year note up to 2.91% from 2.89% late Wednesday. Bond prices and yields move in opposite directions.

How much of a hit did you take in the recent correction? Are you worried about a bear market? What changes have you made in your portfolio and what changes do you plan on making for the rest of the year? E-mail your story to realstories@cnnmoney.com and you could be featured in an upcoming article. For the CNNMoney.com Comment Policy, click here. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.82%3.83%
15 yr fixed3.11%3.08%
5/1 ARM3.41%3.35%
30 yr refi3.80%3.80%
15 yr refi3.11%3.07%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 23,133.24 -24.36 -0.11%
Nasdaq 6,582.35 -41.87 -0.63%
S&P 500 2,556.84 -4.42 -0.17%
Treasuries 2.32 -0.02 -0.98%
Data as of 12:28pm ET
Company Price Change % Change
Micron Technology In... 40.68 -0.97 -2.33%
General Electric Co 23.46 0.34 1.47%
Bank of America Corp... 26.36 -0.12 -0.43%
Apple Inc 155.68 -4.08 -2.56%
Advanced Micro Devic... 13.94 -0.13 -0.92%
Data as of 12:13pm ET

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

Initial claims for unemployment insurance were the lowest in 44 years. It's a sign of a healthy job market. More

Law enforcement wants data that could bring criminals to justice -- but tech firms have refused. Now, the Supreme Court may have the final say. More

It used to be no one talked about their salary. But now Millennials are increasingly opening up about their paychecks, and that can be beneficial for everyone. More