US stock futures rise as Italy passes reform bill - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

US stock futures rise as Italy passes reform bill

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NEW YORK (AP) — Stock futures edged up Friday as new governments appear ready to take over in Italy and Greece, fueling hopes for resolving Europe's debt crisis.

The Italian Senate approved an economic reform bill Friday, opening the way for Premier Silvio Berlusconi to step down. The legislation still has to clear Italy's lower house. Berlusconi has pledged to step down once the reforms are passed.

In Greece, a former central banker is expected to be formally sworn in Friday afternoon.

European stock markets and U.S. futures turned higher after Italy's Senate passed the bill. One hour before the opening bell, Dow Jones industrial average futures are up 89 points, or 0.8 percent, to 11,944. S&P 500 index futures are up 12, or 1 percent, to 1,250. Nasdaq 100 futures are up 23, or 1 percent, to 2,326.

Major stock indexes still look poised to end the week lower. Markets were pummeled Wednesday when Italy's borrowing costs soared above 7 percent and talks to name a new Greek government broke down. The S&P 500 dropped 3.7 percent, its biggest loss since August. The Dow lost 389 points, or 3.2 percent.

The S&P 500 is down 1 percent for the week through Thursday's close. The Dow is down 0.7 percent.

In corporate news, D.R. Horton Inc. said it returned to a quarterly profit as more people bought houses. But the builder's earnings and revenue fell below what analysts had expected. D.R. Horton's stock dropped 1 percent in premarket trading.

Walt Disney Co. rose 4 percent in premarket trading. The company reported record annual profits and revenues after the market closed Thursday, thanks to stronger advertising sales at ESPN and the Disney Channel.

Nordstrom Inc. also reported stronger quarterly profit late Thursday. But the retailer lowered its full-year profit outlook below what analysts expected. Its stock fell 2.7 percent in premarket trading.

Copyright 2011 The Associated Press.

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