Stock futures rise as Moody's reassures, Sears jumps
Stock index futures rose on Friday as reassuring comments from Moody's eased fears about the credit rating outlook for the United States, and oil prices bounced higher, lifting energy shares like Exxon Mobil.
Additionally, investors were encouraged by news of a surprise first-quarter profit from Sears Holdings Corp
The stock was up 24.5 percent at $62.50 before the bell.
Shares of Exxon Mobil Corp
Moody's Investors Service said Thursday it is comfortable with the triple-A sovereign rating on the United States, but it is not guaranteed forever.
There's a little bit of yesterday's fears abating ... that's bringing us up, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
We know the rating does stand a good chance of being downgraded at some point in time, but I wouldn't expect that to happen this year.
S&P 500 futures rose 4.80 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 climbed 45 points, while Nasdaq 100 futures shot up 9.50 points.
The Obama administration has no plans to push General Motors Corp
GM shares were up 5.7 percent at $2.03.
U.S. stock and bond markets sold off on Thursday amid renewed concerns about the risk of the U.S. losing its top rating after Standard & Poor's revised its outlook on Britain to negative from stable, indicating the risk of a downgrade.
(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)
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