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Futures Hold Gains After Economic News

Futures rallied Thursday, attempting to rebound from its worst day in almost three months as Italian bond yields eased and following a handful of better-than-expected economic reports.

Berlusconi’s party is discussing the option of supporting a unity governmentled by former European commissioner Mario Monti as well as early elections, according to Reuters, citing a senior party official.

A fairly positive Italian bond auction also boosted investors’ confidence.

In Greece, former ECB vice-president Lucas Papademos was selected to lead Greece's new crisis coalition after almost four days of talks and speculation. Papademos will act as the interim government until Greece's early election, which is expected in February.

On the economic front, weekly jobless claims declined 10,000 to a seasonally adjusted 390,000, the lowest level since the first week of April, according to the Labor Department. Economists surveyed by Reuters had expected claims to fall below 400,000.

Meanwhile, the U.S. trade deficit unexpectedly shrank to $43.1 billion in September to its narrowest level since December, according to the Commerce Department. Economists had expected the trade deficit to widen to $46 billion, according to a Reuters poll.

Cisco surged after the tech bellwether forecast sales and profit about estimates as demand for its network equipment remained resilient despite global economic woes.

Kohl's gained after the department store chain boosted its full-year profit forecast and said it expects robust sales during the holiday.

Disney and Nvidia are scheduled to post earnings after-the-bell tonight.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

On Tap This Week:

THURSDAY: 30-yr bond auction, MF Global bankruptcy proceedings; Earnings from Disney, Nordstrom, Nvidia
FRIDAY: US Holiday—Veteran's Day. Markets open, banks closed. Consumer sentiment, French short sale ban ends

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