US STOCKS-Wall St set to rise after Spain unveils cuts

* Spain sets sweeping austerity measures

* Disney, Electronic Arts fall after quarterly results

* Futures up: S&P 7.1 pts, Dow 40 pts, Nasdaq 12.25 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Recasts, adds details)

By Leah Schnurr

NEW YORK, May 12 (BestGrowthStock) – Wall Street was set to open
higher on Wednesday as Spain said it would take wide austerity
measures, further easing jitters over euro-zone sovereign debt
woes.

The euro strengthened and European shares rose after
Spain’s announcement. The FTSEurofirst 300 (.FTEU3: ) gained 1.2
percent, with financial services firm ING Groep (ING.N: ) leading
the sector on strong results.

Investors have feared a debt crisis in Greece could spill
over to other euro-zone nations with high debt loads, including
Spain.

Spain’s Prime Minister Jose Luis Rodriguez Zapatero said
Madrid would slash civil service pay by 5 percent this year,
freeze it in 2011 and cut 13,000 public sector jobs this year
to meet European Union deficit targets.

Spain’s move followed a 750 billion euro ($1 trillion)
rescue plan late Sunday to stop the debt woes from spreading,
cheering U.S. investors. For details, see [ID:nLDE64B0SK]

“There are certainly those people who will see the steps
taken in Europe as a replay of the type of steps taken in the
U.S. following the Lehman collapse,” said Rick Meckler,
president of investment firm LibertyView Capital Management in
New York. “Ultimately that proved to be successful in the short
run for markets.”

Concerns over a spreading debt crisis have “been the
biggest fear for U.S. equity players, and as that fear
subsides, we’re more likely to see a positive spin to the
market,” Meckler added.

S&P 500 futures (SPc1: ) rose 7.1 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: ) added 40
points, and Nasdaq 100 futures (NDc1: ) gained 12.25 points.

Shares of Walt Disney Co (DIS.N: ) fell 3.2 percent to $34.63
in premarket trading after the entertainment and media group
reported lower ratings and ad revenues as well as higher costs
despite better-than-expected quarterly earnings.
[ID:nN11225225]

Also on the earnings front, video games maker Electronic
Arts Inc (ERTS.O: ) tumbled 5.4 percent to $17.78 a day after its
quarterly profit topped estimates but were not as strong as
investors expected. [ID:nN10139184]

U.S. investigators are probing whether Morgan Stanley
(MS.N: ) misled investors about mortgage derivative product it
sold and sometimes bet against, the Wall Street Journal
reported, citing sources. Morgan Stanley shares were down 3.1
percent at $27.51 premarket. [ID:nTOE64B07I]

The Dow and the S&P 500 fell in a volatile session on
Tuesday on concerns about euro-zone debt.

Analysts said recent market volatility has obscured strong
economic fundamentals, including last week’s jobs report that
showed employment grew at the fastest pace in four years in
April.

As investors shift attention from Europe’s sovereign debt
troubles, the focus will return to the U.S. economic recovery,
though choppiness in trading could persist.

“The market has been increasingly conditioned to buy on the
dips now that the situation in Europe has been not resolved but
certainly stabilized in the short term,” said Craig Peckham,
equity trading strategist at Jefferies & Co in New York.

Top oil executives will face a second day of questioning
from U.S. lawmakers over a deadly well rupture that unleashed a
huge oil slick in the Gulf of Mexico. [ID:nN11133984]

Following last week’s dramatic intraday plunge in U.S.
markets, securities regulators sent out subpoenas as they seek
to uncover the cause of the drop. [ID:nN11130381]

Stock Market Report
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St set to rise after Spain unveils cuts