Futures Higher as Europe Bans Short-Selling

Futures rebounded Friday, following positive retail sales news and as a ban on short selling in several European markets for the next 15 days appeared to soothe fears over the euro zone debt crisis.

Stocks surged sharply across the boardThursday amid news that French President Nicolas Sarkozy and German Chancellor Angela Merkel will meet next Tuesdayto discuss issues in the the euro zone and as investors snapped up beaten-down sectors.

European shares extended gains, led by the banking sector, following the short-selling ban on financial shares by France, Italy, Spain and Belgium.

In corporate news Bank of America chief executive Brian Moynihan met privately this week with Treasury Secretary Timothy Geithner and Federal Reserve governor Daniel Tarullo to calm investors and employees about the bank's share price fall, according to a Wall Street Journal report.

Among earnings, JCPenney edged higher even after the retailer posted a flat quarterly profitas sales were hampered by its by its exit from the catalog business.

Nvidia surged after the chipmaker beat revenue expectations. However, Evercore cut its price target on the firm to $11 from $12.

On the economic front, retail sales rose 0.5 percent in July, their biggest gain since March, according to the Commerce Department.

The Commerce Department is also due to issue business inventories for June at 10am ET. Economists told Reuters they expected a 0.5 percent increase versus a 1.0 percent rise in May.

Meanwhile, a Survey of Consumer sentiment for August from Thomson Reuters/University of Michigan is due at 9:55am ET. Economists expect a reading of 63.0 compared with 63.7 in the final July report.

Coming Up Next Week:

MONDAY: Empire state mfg survey, housing market index, Fed's Lockhart speaks, credit card default rates reported; Earnings from Lowe's
TUESDAY: Housing starts, import/export prices, industrial production, Sarkozy & Merkel meet; Earnings from Home Depot, Wal-Mart, Saks, TJX and Dell
WEDNESDAY: Weekly mortgage apps, PPI, oil inventories; Earnings from Deere and Target
THURSDAY: CPI, jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, money supply, Forest Labs shareholder mtg; Earnings from Sears, Hewlett-Packard and Gap
FRIDAY: Fed's Pianalto speaks, Google IPO anniversary

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