Stocks set to rise at the open

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NEW YORK (CNNMoney) -- U.S. stocks were set to open higher Wednesday, as investors await the latest plan for European bank recapitalization and sort through Slovakian politics.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all between 0.7% and 1.1% higher ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

"Market sentiment is improving. Expectations are that we will get some resolution in Europe," said Peter Cardillo, chief market economist at Rockwell Global Capital.

The president of the European Commission, Jose Manuel Barroso, will lay out his plan for European bank recapitalization Wednesday in a speech at 9 a.m. ET.

Every development overseas is getting investors' front-and-center attention. More than 80% of the experts surveyed by CNNMoney agree that debt problems overseas are the most challenging hurdle for stocks, which have been struggling to claw back from monthly lows.

U.S. stocks ended mixed Tuesday, with the technology sector rally bucking a broader decline, as investors watched the unfolding drama in Europe.

Investors had been awaiting the outcome of Slovakian parliament's vote to overhaul the European Financial Stability Fund (EFSF) -- essentially a bailout fund for the region's most troubled nations. But, shortly after U.S. markets closed Tuesday, Slovakia voted the measure down.

Europe bank rescue is not enough

The proposed bailout needs to be ratified by all 17 eurozone nations, and Slovakia was the last country to vote. The development is a bit of a setback for European leaders that are struggling to deal with the continent's growing debt crisis. However, Tuesday's "no" vote does not necessarily mean that the plan to expand the EFSF is dead.

Actually, investors expect that in its second round of voting with a new government in place, Slovakia will manage to pass the bailout. "In a second round of voting, they will probably pass the EFSF here," said Cardillo.

Meanwhile, on the domestic front, the U.S. Senate failed to approve President Obama's jobs bill. The 50-49 vote in favor of the measure fell short of the 60 senators needed to advance the $447 billion dollar plan.

Companies: In addition to watching the debt drama unfold across the Atlantic, investors will be tuning in for the latest round of company earnings, Cardillo said.

Alcoa (AA, Fortune 500) reported quarterly income that fell short of analysts' expectations, but the company brought in more revenue than anticipated. Shares of Alcoa were down 3% in premarket trade.

The aluminum producer is the first Dow component to report third-quarter results.

PepsiCo (PEP, Fortune 500) reported stronger revenue Wednesday on global snack and beverage volume. PepsiCo also saw gains from its the acquisition of Wimm-Bill-Dann, a Russian dairy and juice company. Shares were up 1.2% in premarket trade.

Meanwhile, shares of clothing company Liz Claiborne (LIZ) surged almost 18% in premarket trade, after the company announced it would sell off a few of its brands.

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Overall, S&P 500 company earnings are expected to have climbed almost 13% in the third quarter of 2011, according to earnings tracker Thomson Reuters. Revenue of the companies in the benchmark index are expected to have risen 10%.

Economy: The latest minutes from the Federal Open Market Committee's meeting will be released at 2 p.m. ET.

World markets: European stocks rose in midday trading. Britain's FTSE 100 (UKX) ticket up 0.4%, the DAX (DAX) in Germany gained 1.2% and France's CAC 40 (CAC40) added 1.4%.

Asian markets ended mixed. The Shanghai Composite (SHCOMP) jumped 3% and the Hang Seng (HSI) in Hong Kong added 1%, while Japan's Nikkei (N225) slipped 0.4%.

Currencies and commodities: The dollar lost ground against the euro and the British pound and was nearly flat against the Japanese yen.

Oil for November delivery gained 14 cents to $85.95 a barrel.

Gold futures for December delivery rose $24.90 to $1,685.90 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.22%.