U.S. stock futures on Wednesday recaptured a portion of the prior day’s losses as worries about the ability of various countries to repay their debt continued to impact markets.
S&P 500 futures rose 5.9 points to 1,095.90 and Nasdaq 100 futures rose 10 points to 1,778.50. Futures on the Dow Jones Industrial Average rose 45 points.
A flurry of negative reports from leading rating agencies on the ability of countries ranging from the U.S. to Greece to service their debt dragged U.S., and world, stocks lower on Tuesday, albeit in thin trade. The Dow Jones Industrial Average fell 104 points, the S&P 500 lost 11 points and the Nasdaq Composite dropped 16 points.
Bank of America Corp.’s plan to repay the entire $45 billion it received in taxpayer bailouts clears a path for the bank’s next chief executive, improves the outlook for the bank’s stock and gives retiring CEO Ken Lewis a boost as he departs, analysts say. Bank of America Corp. (NYSE:BAC, $15.41, -$0.48, -3.02%) rose 1.10 percent to $15.58 on Wednesday morning pre-market trading session, while on Tuesday, shares of Bank of America fell 3.02 percent and closed on $15.41, BofA jumped 2.39 percent in the past one month trading.
Citigroup (C) won’t gain much from paying back the government now, while Wells Fargo (WFC) and regional banks including Comerica (CMA) are in a good position to do so. Citigroup Inc. (NYSE:C, $3.91, -$0.12, -2.98%) jumped 1.02 percent to $3.95 on Wednesday morning pre-market trading session, while on Tuesday, Citigroup shares were down 2.98 percent, closed on $3.91 and Wells Fargo & Company (NYSE:WFC, $26.03, -$0.33, -1.25%) rose 0.77 percent to $26.23 on Wednesday morning pre-market trading session, while on Tuesday, shares of Wells Fargo fell 1.25 percent and closed on $26.03.
The U.S. government is preparing to cash in on its investment in JPMorgan Chase. On Thursday, the Treasury Department will auction off the stock warrants it received from the bank as part of its $25 billion Troubled Asset Relief Program loan. JPMorgan Chase & Co. (NYSE:JPM, $41.21, -$0.04, -0.10%) jumped 0.66 percent to $41.48 on Wednesday morning pre-market trading session, while on Tuesday, JPMorgan shares were down 0.10 percent, closed on $41.21.
Royal Bank of Scotland Group PLC is close to selling its retail- and commercial-banking assets in China, India and Malaysia to U.K.peer HSBC Holdings PLC, people familiar with the situation said. Royal Bank of Scotland Group plc (NYSE:RBS, $9.98, -$0.85, -7.85%) rose 3.01 percent to $10.28 on Wednesday morning pre-market trading session, while on Tuesday, shares of RBS fell 7.85 percent and closed on $09.98.
Powell Industries Inc.’s (POWL) fiscal fourth-quarter earnings rose 19% amid lower expenses, though its backlog continued to decline. The results exceeded Wall Street estimates. Powell Industries, Inc. (NASDAQ:POWL, $35.51, -$1.57, -4.23%) jumped 2.79 percent to $36.50 on Wednesday morning pre-market trading session, while on Tuesday, Powell shares were down 4.23 percent, closed on $35.51.
Jackson Hewitt Tax Service Inc.’s (JTX) fiscal second-quarter loss narrowed on lowered expenses as the tax preparer boosted the number of Wal-Mart Stores Inc. (WMT) locations it plans to operate in. Jackson Hewitt Tax Service Inc. (NYSE:JTX, $4.13, +$0.04, 0.98%) rose 4.84 percent to $4.33 on Wednesday morning pre-market trading session, while on Tuesday, shares of Jackson Hewitt jumped 0.98 percent and closed on $4.13.
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