U.S. Stocks Expected To Open Ahead On Nike, Oracle Earnings

NEW YORK (MarketWatch) -- U.S. stocks readied for a higher start, with positive earnings from Oracle Corp. and Nike Inc. helping set a positive tone in what's is likely to be a volatile session as key futures and options contracts expire.

"It's options expirations day, and that increases volatility," said Peter Cardillo, chief market economist at Avalon Partners. With economic data lacking, good corporate numbers were helping the pre-market, he said.

"We also have a long list of federal governors speaking, so I suspect the market will have an ear glued to what the Feds may or may not say," Cardillo said.

Dow Jones Industrial Average futures gained 85 points to 13,940.

Futures for the S&P 500 rose 11.20 points to 1,543.00, and those for the Nasdaq 100 climbed 14.75 points to 2,072.50.

Fed talk

In a speech delivered Friday in Frankfurt, Germany, Federal Reserve Vice Chairman Donald Kohn dismissed the notion of central bankers trying to spare investors the consequences of poor bets, saying Fed officials remain focused on the economy as a whole. .

In corporate news, business-software maker Oracle reported a 25% rise in profits, topping expectations. UBS lifted Oracle's price target to $25 from $24.

Nike also topped estimates, with the globe's biggest athletic shoe and apparel maker reporting a 51% rise in profit. .

Dow component Exxon Mobil Corp. late Thursday said it evacuated about 200 workers from the Gulf of Mexico due to a tropical disturbance.

Shares of Masco Corp. are likely to see pressure after the Taylor, Mich., manufacturer cut its projected earnings for the year.

Wells Fargo & Co. was downgraded by Merrill Lynch to neutral from buy, with the broker citing the bank's rising credit losses and its stock's recent outperformance.

Other markets

In early action on the New York Mercantile Exchange, gold futures edged higher after hitting a new 27-year high in electronic trading. Gold for December delivery gained $1.70 at $741.60 an ounce. .

In London, the FTSE 100 index gained 0.7%, or 42.70 points, to 6,471.80, with other European shares also advancing. .

By Kate Gibson