Stock futures in the U.S. are up this morning, indicating a potentially strong opening for the financial markets.

While volatility is likely to remain high, positive futures suggest that the co-ordinated rate cuts by central banks are having the intended effect. European markets have moved higher, with the FTSE 100 and DAX up over 1%.

Markets may also be buoyed by reports that the U.S. Treasury is considering taking an ownership stake in major banks. This follows the announcement of a similar plan in Great Britain. The plan, which amounts to a partial (and voluntary) nationalization of the banks, seems to be generating more enthusiasm and confidence than the vague $700 billion bailout already approved by Congress.

Additional positive news came from International Business Machines (NYSE: IBM), which released preliminary third quarter results above analyst estimates. The stock is up 4.6% to $94.76 in pre-market trading. Sales were down, but the company showed impressive results nonetheless, suggesting that other large tech firms may be able to weather the global slowdown.

Analysts will be focused on weekly jobless claims and August wholesale inventory reports for further clues about the state of the economy. The end of the ban on short selling may act as another market catalyst.

Some investors are starting to believe that the worst of the credit crunch is behind us, and European banks including UBS (NYSE: UBS) and Royal Bank of Scotland (NYSE: RBS) are leading a bullish move in the markets.

The dollar stabilized and oil weakened, giving a boost to many blue chip stocks. Home Depot (NYSE: HD) rose nearly 4% in trading on Thursday, and American Express (NYSE: AXP) was up nearly 7%.

Not all news is positive, however. U.S. futures are flat as the markets await the Labor Department's official employment report, due today. According to Bloomberg's calculation, unemployment in the U.S. continues to rise as employers shed more than 75,000 jobs in April. The unemployment rate is now probably at 5.2%, a three-year high. And real unemployment is probably worse that that, since the Labor Department's calculation method, which Bloomberg uses, significantly undercounts unemployment and underemployment.

And the Microsoft-Yahoo! saga continues. The AP reports that Microsoft (NASDAQ: MSFT) may go hostile in its bid to buy Yahoo! (NASDAQ: YHOO) today. Should be entertaining, so say tuned.

UPDATE: Job numbers better than expected, unemployment falls to 5.0%.

Main market news here: Before the bell: All eyes on Fed

The Financial Times reported Tuesday that Citigroup (NYSE: C) has trimmed its structured investment vehicles by more than $15 billion since October.

STMicroelectronics (NYSE: STM), rival to Texas Instruments (NYSE: TXN), announced it is buying video-chip maker Genesis Microchip (NASDAQ: GNSS) for $336 million. The deal pays $8.55 a share, a 60% premium on Genesis' closing price Monday.

Home lender Freddie Mac (NYSE: FRE), has adopted stricter limits and broader guidelines for when it will buy out delinquent loans from mortgage pools.

Speaking in Tokyo on Tuesday, Sony Corp. (NYSE: SNE) Chief Executive Officer Howard Stringer said the electronics maker plans to network its PlayStation 3 video game console and its other electronics in 2008.

Stock futures were tightly mixed Tuesday as investors looked ahead to this afternoon's interest rate announcement from the Federal Reserve Board. The Fed is widely expected to lower the Federal Funds rate -- the rate of interest banks charge each other -- by a quarter point, although forecasts of a half-point cut are growing.

In addition to the Fed's afternoon announcement, the Census Bureau of the Department of Commerce will release wholesale inventories for October this morning at 10.

On Monday, the Dow closed at 13,727.03 and the S&P 500 finished at 1,515.96, each higher by three-quarters of a percent. The Nasdaq reached 2,718.95, 0.47 percent higher. U.S. stocks were boosted by anticipation of interest rate cuts and an improved outlook on home sales. The National Association of Realtors reported yesterday that pending-sales of homes had climbed 0.6% in October, increasing for a second-straight month following a long skid.

After Monday's close, Washington Mutual (NYSE: WM) announced it will discontinue subprime mortgage lending and plans to cut 2,600 jobs in its home loans division. WaMu will write-down the value of its loans unit by $1.6 billion and now expects to report a loss in the fourth quarter, echoing similar news Monday from Swiss bank UBS (NYSE: UBS).

Top grocer Kroger Co. (NYSE: KR) is due to report quarterly results on Tuesday; analysts expect EPS of 35 cents per share. Tax preparer H&R Block (NYSE: HRB), initially scheduled to report second-quarter earnings Monday, now says it will not file on time.

Overseas, the dollar was little changed against the euro, and rose from 111.67 to 112.11 yen. The Nikkei 225 climbed 0.8% to close above 16,000, while London's FTSE 100 slipped in morning trades.

Main market news here: Microsoft's upbeat earnings should boost techs

Vonage Holdings (NYSE: VG) shares climbed in after-hours trading on news the internet phone company has agreed to settle its lawsuit with Verizon Communications (NYSE: VZ). Vonage will pay as much as $120 million to end the patents-infringement case.

In its pursuit of BEA Systems (NASDAQ: BEAS), Oracle Corp. (NASDAQ: ORCL) has rejected as "impossibly high" a $21-per-share counteroffer from BEA's board of directors. Oracle is firmly standing by its original $17 bid, saying the offer will expire Sunday evening.

The Wall Street Journal is reporting that Macy's (NYSE: M) will be the exclusive department store retailer of Tommy Hilfiger sportswear beginning next fall. Tommy Hilfiger is held by Apax Partners.

Stock index futures pointed to a higher opening Friday on Wall Street, amid speculation that technology stocks would rise on Microsoft (NASDAQ: MSFT)'s strong earnings report late Thursday. Optimism was tempered on expectations that the monthly consumer confidence survey due Friday morning will show a declining economic outlook.

Yesterday, the Dow Jones Industrial Average lost just 3.33, ending a volatile trading session that saw the index swing as low as far as 100 points down. The Nasdaq Composite Index fared worse, falling 23.90, or 0.86%, to 2,750.86, while the S&P slipped 1.48 to 1,514.40.

The University of Michigan will release final consumer confidence figures for October at 10 this morning. The monthly survey is expected to show Americans more pessimistic about the nation's economic future.

Troubled Countrywide Financial (NYSE: CFC) will report third-quarter results this morning. Analysts expect the top mortgage lender to post losses of $1.26 per share, though expectations vary widely.

Trucking group Arkansas Best Corp. (NASDAQ: ABFS) and industrial conglomerate Ingersoll-Rand (NYSE: IR) are among other companies reporting earnings Friday.

Abroad, stocks headed higher in Asia, with Japan's Nikkei and Hong Kong's Hang Seng indexes rising. Stocks were flat in early European trading.

Microsoft reported first-quarter earnings after the market close Thursday, posting a 23 percent rise that exceeding analysts' expectations. The software giant raised its forecasts for the year, citing sales of Windows Vista and its new Xbox 360 game Halo 3.

Merrill Lynch (NYSE: MER) shares advanced overseas on reports that Merrill Lynch CEO Stanley O'Neal discussed merger potential with Wachovia (NYSE: WB) without consulting Merrill's board of directors.

Index futures were flat Thursday morning ahead of today's round of earnings results. Companies reporting this morning include Dow 30 component Pfizer (NYSE: PFE) and Bank of America (NYSE: BAC), with internet giant Google (NASDAQ: GOOG) reporting after the market closes.

Analysts expect Pfizer Inc., the world's largest pharmaceutical firm will post earnings of 52 cents per share, following a 16% miss last quarter.

UPDATE: Citing a $2.8 billion charge to end investment in the insulin drug Exubera, Pfizer posted third-quarter earnings of just 11 cents per share. But for the Exubera charge, Pfizer said it had earned 58 cents per share.

UPDATE: In its third-quarter report Thursday morning, No. 2 U.S. bank Bank of America posted just 82 cents EPS, missing analysts expectations by nearly a quarter.

Google, which will report third-quarter earnings this afternoon, is expected to post earnings per share of $3.25, up from its Q3 2006 EPS of $2.36. Check back with BloggingStocks this afternoon as we LiveBlog Google's earnings call.

Extending a run of strong tech results, eBay (NASDAQ: EBAY) posted impressive third-quarter numbers after Wednesday's closing, crippled though by a write-off related to its investment in Skype, the online telephony service.

New unemployment claims are due out this morning -- the number is expected to climb from last week's 308,000 new claims reported. Also being watched Thursday, the Philadelphia Federal Reserve will report its manufacturing index for October at noon, an indicator of expansion.

UPDATE: The Labor Department reported that 337,000 new unemployment claims were filed last week, up 28,000 from last week's unemployment report.

Foreign bourses were mixed Thursday: Japan's Nikkei average rose in early trading, while Britain's FTSE 100 slipped 0.25%.

Main market news here: Before the bell: Credit concerns send futures lower

In its market debut Tuesday, EMC Corp. (NYSE: EMC) spinoff VMware (NYSE: VMW) gained 76%, climbing from its $29 IPO price to close at $51 even.

France Telecom (NYSE: FTE) shares climbed overseas on rumors that its cellular division, Orange, had won the rights to market Apple (NASDAQ: AAPL)'s iPhone in France. France Telecom declined to comment.

Both Sirius Satellite Radio (NASDAQ: SIRI) and Citadel Broadcasting (NYSE: CDL)'s New York radio station WABC are rumored to be courting dismissed CBS (NYSE: CBS) radio curmudgeon Don Imus, who settled his termination dispute with the broadcaster yesterday.

Main market news here: Before the bell: Futures advance on central banks' efforts

Top toymaker Mattel Inc. (NYSE: MAT) may initiate another recall after again finding excessive lead levels in some toys' paint. Mattel recalled some 1 million Fisher Price toys earlier this month.

Cell-phone maker Nokia Corp. (NYSE: NOK) is replacing 46 million batteries made by Matsushita Electric Industrial (NYSE: MC), saying the batteries are subject to overheating.

A consumer satisfaction survey out of the University of Michigan showed Yahoo! (NASDAQ: YHOO) rated higher than Google (NASDAQ: GOOG).

In the wake of a series of courtroom setbacks vs. rival Broadcom (NASDAQ: BRCM), chipmaker Qualcomm (NASDAQ: QCOM)'s head counsel has resigned.

Index futures advanced this morning, indicating gains -- hopefully they'll stick today. After spending nearly all of Monday's session higher, all three major U.S. indexes closed less than 0.1% lower.

The European Central Bank continues to inject cash into its economy, compounding efforts by the Federal Reserve and other overseas central banks to reverse declining confidence in credit markets.

The Labor Department will report July's Producer Price Index an hour ahead of today's opening bell; July's PPI is expected to rise by 0.1%. The Census Bureau/Commerce Department's report on the international trade balance for June will also be released this morning.

Home Depot Inc. (NYSE: HD) released second-quarter figures this morning, posting a 15% drop in profit over last year's second-quarter numbers. Check back at 9 a.m. as Michael Fowlkes liveblogs Home Depot's conference call.

Wal-Mart (NYSE: WMT) also reported second-quarter earnings Tuesday, posting higher sales and profit but lowering expectations for the fiscal year.

Other companies reporting earnings Tuesday include retail parent TJX Co. Inc. (NYSE: TJX), chipmaking supplier Applied Materials Inc. (NASDAQ: AMAT), and Agilent Technologies Inc. (NYSE: A).

Overseas, the Nikkei and London's FTSE 100 crept modestly higher.

Company news

EMC Corp. (NYSE: EMC) spinoff VMware (NYSE: VMW) will make its anticipated market debut Tuesday. Last night's offering of 33 million shares fetched $29 each from underwriters, raising $957 million.

Swiss bank UBS (NYSE: UBS) also reported cautious earnings, posting a 79% jump in second-quarter profit but forecasting lower earnings in the second half of the year.

Here we go again -- the Dow was poised to open higher Monday after gaining 475 points early last week, then giving back nearly 90% of it heading into the weekend.

Advancing stock futures suggested a Wall Street rebound after central banks overseas continued to pump money into their banking systems, following a record $323 billion added last week in response to the ongoing credit market crisis.

The Blackstone Group (NYSE: BX) posted earnings early Monday morning, reporting triple the net income and revenue over its second quarter last year. Less than two months since Blackstone's much-watched market debut, its shares now fetch 18% less than their $31 opening price.

In addition to Blackstone, companies reporting earnings Monday include DTE Energy (NYSE: DTE) and Sysco Corp. (NYSE: SYY).

The government will release figures on July's retail sales at 8:30 this morning; the June reading of business inventories will come out at 10.

Stocks gained in Europe and Asia on Monday, with the Nikkei climbing a modest 0.2 percent to 16,800.05 , while London's FTSE 100 sat 1.8% higher mid-session.

Corporate news

Wisconsin-based Midwest Air Group (NYSE: MEH) is accepting a buyout offer from Texas Pacific Group and Northwest Airlines (NYSE: NWA). Earlier, Midwest rejected a hostile bid from AirTran Holdings (NYSE: AAI).

Main market news here: Before the bell: Losses aren't over

Illuminating Apple (NASDAQ: AAPL) iPhone users' reports of dead spots on their touch screens, an analyst notes that the property rights for the touch screen's chemical makeup were purchased from a bankrupt Finnish firm that could not solve the screen film's degradation and loss of sensitivity that came with frequent use.

Electronic Arts (NASDAQ: ERTS) has won exclusive rights through 2013 to create video games from the properties of toy maker Hasbro (NYSE: HAS), including Monopoly and other classic board games.

Microsoft (NASDAQ: MSFT) has begun testing a quick "dashboard" view for its 300 million Windows Live users.

Vivendi's world-leading Universal Music Group plans to license the sale of songs without digital copy protection. Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), and Wal-Mart (NYSE: WMT) will sell the songs online. Apple's iTunes is notably not participating.

What bad news did you want first? Expect the Dow index to give up the week's remaining gains today -- stock futures indicate Thursday's 387-point plummet isn't finished.

Goldman Sachs (NYSE: GS) fell overseas on reports that its North American Equity Opportunities fund has dropped more than 15 percent this year, compounding worries about GS' Global Alpha fund.

The Wall Street Journal reports that SEC regulators are reviewing the books at Goldman Sachs, Merrill Lynch (NYSE: MER) and other top brokerage firms and banks, digging for unreported losses stemming from the subprime mortgage meltdown.

The Federal Reserve and its European and Japanese counterparts all injected huge sums into their financial systems Thursday and Friday in response to the ongoing credit turmoil.

Companies reporting earnings Friday include satellite television provider EchoStar Communications (NASDAQ: DISH) and contact lens maker Bausch & Lomb (NYSE: BOL).

Japan's Nikkei average led the losses overseas, dropping 2.4%, its steepest loss since mid-March. The Dow's setback echoed throughout Europe, sending the French CAC 2% lower, London's FTSE 1.9% lower, and Germany's DAX down 1.6%.

Corporate news

Speculation that Barclays Plc (NYSE: BCS) will back out of the unprecedented banking takeover of ABN Amro Holding NV (NYSE: ABN) sent ABN shares down 4.8% overseas.

Following the Dow's steepest one-day climb in four years, stock futures were flat Tuesday ahead of the Federal Reserve's 2:15 p.m. decision on interest rates. The Fed is expected to maintain its benchmark federal funds rate at 5.25%.

Also Tuesday morning, the Labor Department will report on second-quarter productivity and costs; moderated labor costs and increased productivity are expected.

Companies reporting earnings today include Cisco Systems (NASDAQ: CSCO), TXU Corp. (NYSE: TXU), and Harrah's Entertainment (NYSE: HET). Cisco is expected to match earnings estimates of 35 cents a share.

Overseas, the Nikkei eked out a 0.04% rise to close at 16,921.77, while the FTSE 100 rallied following Wall Street's gains Monday.