Wall St futures signal gains after sharp slide

* U.S. stock futures pointed to a stronger start for Wall
Street on Friday, with equities set to rebound after falling
sharply in the previous session.

* By 0842 GMT, futures for the Dow Jones (DJc1: ) rose 0.6
percent, S&P 500 futures (SPc1: ) were up 0.7 percent and Nasdaq
futures (NDc1: ) rose 0.5 percent.

* U.S. stocks (Read more about the stock market today. ) plunged 9 percent in the last two hours of
trading on Thursday before clawing back some of the losses as a
suspected trading glitch and fears of a new credit crunch in
Europe threw markets into disarray.

* The Dow suffered its biggest ever intraday point drop —
998.5 points. The market’s fall may have been exacerbated by an
erroneous trades that showed some shares briefly fell to nearly
zero. The Nasdaq and others said they would cancel multiple
erroneous trades.

* Citigroup Inc (C.N: ) said it was investigating a rumour
that one of its traders entered the trade, a spokesman for the
bank said on Thursday. Citigroup, the third-largest U.S. bank,
said it has no evidence that an erroneous trade has been made.
[ID:nN06244510]

* Shares of Citigroup fell 1.5 percent to $3.98 in extended
trading on Thursday, after dropping 3.4 percent in the regular
session.

* Investors will eye April’s U.S. non-farm payrolls data,
with economists polled by Reuters expecting the numbers to show
that employers added 200,000 jobs in April after a 162,000
increase in the previous month. Unemployment is set to hold
steady at 9.7 percent. The report is due at 1230 GMT.
[ID:nN03205134]

* The payrolls numbers, however, could be slightly weaker
than the average forecast of a 200,000 gain in jobs, according
to the median projection of the 20 most accurate economists in
recent Reuters polls.

* Shares of Kraft Foods Inc (KFT.N: ) fell 0.7 percent to $29
in extended trading on Thursday after the company reported its
first-quarter results.

* European equities plunged to a three-month low in early
trade on Friday, before recouping some losses with mounting
concerns about a severe debt crisis in the euro zone forcing
investors to dump equities.

* Treasury Secretary Timothy Geithner will discuss efforts
to get aid to debt-stricken Greece with fellow finance ministers
from Group of Seven nations on Friday, a Treasury spokesman
said. [ID:nN06238681]

* German lawmakers in the Bundestag lower house of
parliament began debating a draft law on Friday on Germany’s
contribution to an aid package for Greece.

* American International Group (AIG) (AIG: ) posts quarterly
results on Friday, with analysts expecting the world’s biggest
insurer to post earnings per share of $0.48 from a loss per
share of $19.40 in the same quarter a year ago.

* AIG’s board, anticipating a $51 billion windfall from two
huge deals, has formed a special committee to explore ways to
pay back the U.S. government, a source familiar with the matter
said.

* Other companies to report earnings include the Washington
Post (WPO: ), CF Industries (CF: ), Edison International (EIX: ),
Pepco Holdings (POM: ) and PG&E Corporation (PCG: ).

* The Dow Jones industrial average (.DJI: ) dropped 347.80
points, or 3.20 percent, to 10,520.32. The Standard & Poor’s 500
Index (.SPX: ) fell 37.75 points, or 3.24 percent, to 1,128.15.
The Nasdaq Composite Index (.IXIC: ) lost 82.65 points, or 3.44
percent, to 2,319.64.

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(Reporting by Harpreet Bhal; Editing by Jon Loades-Carter)

Wall St futures signal gains after sharp slide