US STOCKS-Futures rise as bargain hunters prowl

* Geithner flies to London for talks on debt crisis

* Durable goods, new home sales data due

* Futures up: Dow 82 pts, S&P 9.2 pts, Nasdaq 15.25 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.

Banks and industrial stocks, among the worst-hit issues in
the pullback, gained in premarket trading. Citigroup Inc (C.N: )
rose 2.9 percent after a brokerage upgrade, while industrial
conglomerate General Electric Co (GE.N: ) was up 1.4 percent.

“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.”

S&P 500 futures (SPc1: ) rose 9.2 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 15.25 points.

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]

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.

European stocks rose 2.3 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:nLDE64P0DR]

The euro slipped but was off near four-year lows against
the dollar. Sentiment remained shaky on worries 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.

Oil futures rose 3 percent to near $71 a barrel after a
report showed a drop in U.S. gasoline stockpiles.

Stock Market Today

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Futures rise as bargain hunters prowl