US STOCKS-Futures rise as bargain hunters lift world stocks

* Geithner flies to London for talks on debt crisis

* Durable goods, new home sales data due

* Futures up: Dow 47 pts, S&P 7.2 pts, Nasdaq 12.25 pts

* For up-to-the-minute market news see [STXNEWS/US]

By Edward Krudy

NEW YORK, May 26 (BestGrowthStock) -U.S. stock index futures rose
on Wednesday, a day after markets clawed back from a steep
sell-off and as U.S. Treasury Secretary Timothy Geithner flew
to Europe to press for united action to tackle the region’s
deepening debt crisis.

* Geithner, in an apparent criticism of Germany, called for
a “carefully designed global approach” to financial reform as
he arrived for talks about euro-zone debt troubles that is
shaking world markets and fueling fears about a double-dip
recession. For details, see [ID:nSGE64O00O]

* “We are looking at a bit of a bounce here this morning,”
said Peter Cardillo, chief market economist at Avalon Partners.
“What we’re seeing here is bargain hunting coming in.
“Yesterday’s action is a good indication that the correction is
nearing it’s end.”

* U.S. indexes have entered a technical correction, falling
more that 10 percent from a recent peak on April 23. But
Tuesday’s late rally pushed the Dow industrials back above the
psychologically important 10,000 level.

* S&P 500 futures (SPc1: ) rose 9.7 points and were above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) rose 82
points, and Nasdaq 100 futures (NDc1: ) added 12.25 points.

* European stocks rose 2.4 percent Wednesday morning,
bouncing back from nine-month lows in the previous session, as
investors sought bargains among beaten-down issues. Japan’s
Nikkei average rose 0.7 percent, a day after tumbling to a
six-month low. [ID:nLDE64P0QD]

* The euro remained under pressure, edging down toward a
four-year low against the dollar, as investors worried that the
euro-zone crisis could slow the flow of credit, hurt banks and
undermine a global recovery.

* The Organisation for Economic Co-operation and
Development’s chief economist told Reuters a return to
recession is unlikely in the euro zone and a drop in the value
of the euro should help offset the toll that debt-shrinking
austerity measures takes on economic growth. [ID:nLDE64O1OG]

* In a further sign of tensions on the Korean peninsula,
North Korea threatened to close the last road link with the
South if Seoul goes ahead with anti-Pyongyang propaganda
broadcasts as Washington pressured China to help persuade the
North to change its ways. [ID:nTOE64O09T]

* On the macro front, investors awaited monthly data on
durable goods orders, due at 8:30 a.m. EDT (1230 GMT: ), and new
home sales, due at 10 a.m. EDT (1400 GMT: ). Wall Street is
questioning the strength of the U.S. recovery, partly because
of a continued weak labor market.

* TiVo Inc (TIVO.O: ), the digital video recording technology
company, reported its fifth consecutive quarterly loss and a
slower pace in new subscriber additions. [ID:nN25152824]

* Oil futures rose 3 percent to top $70 a barrel after a
report showed a drop in U.S. gasoline stockpiles.

Stock Market Basics

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Futures rise as bargain hunters lift world stocks