US STOCKS-Futures sharply higher on China euro-zone comments

* China denies report on euro-zone holdings

* Spain moves to cut budget deficit

* GDP, jobless claims on tap

* Futures up: Dow 196 pts, S&P 24.5 pts, Nasdaq 41.75 pts

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

By Edward Krudy

NEW YORK, May 27 (BestGrowthStock) – U.S. stock index futures
pointed to a rise of about 2 percent at the open on Thursday
after China denied a report it was reviewing its holdings of
euro-zone sovereign bonds due to the region’s debt crisis.

* The People’s Bank of China said a Financial Times report
that Beijing was concerned about its exposure to the euro zone
debt crisis was groundless. The report cut short a rally in
equities and pushed indexes into the red as investors remained
nervous after recent heavy losses.

* Also helping to sooth markets, Portugal said it was fully
engaged in fiscal consolidation, and Spain’s parliament passed
a 15 billion euro ($18.4 billion) austerity package to cut its
budget deficit. For details, see [ID:nLDE64Q0J4]

* “We have gone through a period of a very, very hard
sell-off, and I think traders are looking for some evidence of
a stopping point for those sales. This morning seems to be at
least the first effort at a significant comeback,” said Rick
Meckler, president of investment firm LibertyView Capital
Management in New York.

* S&P 500 futures (SPc1: ) jumped 24.5 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: ) soared
196 points, and Nasdaq 100 futures (NDc1: ) put on 41.75 points.

* St. Louis Federal Reserve President James Bullard said he
did not expect contagion from Europe’s fiscal problems to reach
the United States, adding that the world’s biggest economy may
actually benefit from a “flight to safety.” [ID:nWEB3438]

* Japan’s Nikkei average came off a six-month low to close
up 1.2 percent on Thursday, while European stocks gained 2.3
percent in morning trade. [ID:nLDE64Q0PC]

* U.S. crude oil futures (CLc1: ) rose 2.6 percent to top $73
a barrel, supported by gains in equities markets and after
U.S. government data Wednesday showed an increase in fuel
demand.

* In earnings news, H.J. Heinz Co (HNZ.N: ) posted higher
quarterly profit, but also said earnings for the year would be
hit by currency fluctuations. [ID:nN27211489]

* Warehouse club operator Costco Wholesale Corp (COST.O: )
and close-out retailer Big Lots Inc (BIG.N: ) both recorded a
higher quarterly profit. [ID:nSGE64Q071] and [ID:nSGE64Q0AX]

* Yahoo Inc (YHOO.O: ) said it could return to double-digit
revenue growth in the next few years as the Internet pioneer
revamps its network of websites. [ID:nN26210396]

* On the economic side, the second reading of first-quarter
U.S. gross domestic product growth and weekly jobless claims
will both be released at 8:30 a.m. EDT (1230 GMT)

* Economists forecast a 3.4 percent annualized rate of
growth, and look for new jobless claims to have fallen to
455,000 last week from 471,000 the week before.

* Wall Street staged another late-day reversal Wednesday to
end lower after the Financial Times report on China.

Stock Market Trading

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

US STOCKS-Futures sharply higher on China euro-zone comments