Stocks head for gains on debt ceiling proposal

October 10, 2013: 7:33 AM ET
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NEW YORK (CNNMoney)

Stocks are poised to open higher for a second straight session Thursday on rising hope that U.S. leaders will sign off on a temporary resolution to the debt ceiling crisis.

U.S. stock futures were up roughly 1% ahead of the opening bell.

"The market is optimistic that a deal to increase the debt ceiling temporarily can be reached before October 17th," said Kit Juckes of Societe Generale. "U.S. political protagonists are talking again and [incoming Federal Reserve chairwoman Janet] Yellen's nomination has been well received."

House Republican members and party leadership sources told CNN that leaders are working on a proposal to raise the debt ceiling temporarily, while the government would remain partially shut down.

That would buy time for negotiations on the budget impasse.

Related: Extreme fear still gripping investors

While most economic reports are on hold because of the shutdown, the U.S. Labor Department will release its weekly report on initial jobless claims at 8:30 a.m. ET.

What's moving: Shares of Citrix Systems (CTXS) sank in premarket trading after the software company released its third-quarter results early, saying it expected earnings and revenue to come in lower than previously anticipated.

Netflix (NFLX), eBay (EBAY) and Halliburton (HAL) were among the biggest gainers early Thursday.

U.S. stocks finished higher Wednesday as investors cheered President Obama's nomination of Yellen to be the next head of the Fed.

Related: Signs of rising default fears

European markets were broadly higher in morning trading, with France's CAC 40 leading the pack with a 1.5% jump, while Asian markets ended mixed. The main indexes in Shanghai and Hong Kong fell by 0.9% and 0.5% respectively. In Japan, the Nikkei added 1.1% as the yen weakened against the dollar.

Markets
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Index Last Change % Change
Dow 17,814.94 -2.96 -0.02%
Nasdaq 4,758.25 3.36 0.07%
S&P 500 2,067.03 -2.38 -0.12%
Treasuries 2.26 -0.05 -2.16%
Data as of 10:16pm ET
Company Price Change % Change
Apple Inc 117.60 -1.02 -0.86%
Bank of America Corp... 17.10 -0.08 -0.47%
Huntington Bancshare... 10.11 -0.07 -0.69%
Kinder Morgan Inc 40.75 -0.04 -0.10%
Ford Motor Co 15.68 0.01 0.06%
Data as of 4:05pm ET