Stocks head for higher ground after Europe deal

@CNNMoneyInvest December 9, 2011: 9:12 AM ET
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NEW YORK (CNNMoney) -- U.S. stocks are gearing up for a higher open Friday, after a majority of European leaders agreed on a new deal to try to resolve the eurozone debt crisis.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all slightly higher ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

During a meeting in Brussels early Friday, the 17 members of the eurozone -- which share the embattled single currency -- reached a deal for a new intergovernmental treaty to deepen the integration of national budgets. Six other EU nations supported the deal, whereas Britain and three other countries did not. Leaders are aiming to have the plan ready by March.

European stocks and U.S. stock futures headed higher after the news, even after Moody's downgraded three top French banks the same morning. Those banks are BNP Paribas, Credit Agricole SA and Société Générale.

Meanwhile, an exclusive Reuters report that China is creating a $300 billion fund to invest in both Europe and the United States, could also be lending support to markets, said Jennifer Lee, an economist with BMO Capital Markets.

Eurozone leaders: New deal without UK

U.S. stocks are coming off of losses Thursday, as anxiety was high ahead of a crucial summit aimed at resolving the European debt crisis.

The stock sell-off accelerated in the last 20 minutes of trading, with all three indexes falling to their lows of the day, after a flurry of headlines put the likelihood of a debt crisis solution into question.

The declines were sparked in part by European Central Bank President Mario Draghi's refusal to commit to offering broad assistance to troubled eurozone countries on Thursday. Draghi also emphasized "substantial downside risks" for the European economy.

U.S. Treasury Secretary Tim Geithner is in Europe all week to meet with top government officials, highlighting the growing concern in Washington about the eurozone debt crisis.

World markets: European stocks rose in morning trading. Britain's FTSE 100 (UKX) ticked up 0.6%, the DAX (DAX) in Germany gained 1.3% and France's CAC 40 (CAC40) added 1.5%.

Asian markets ended lower, after mixed reports on China's economy showed that inflation cooled in November while industrial production slowed sharply. The Shanghai Composite (SHCOMP) fell 0.6%, the Hang Seng (HSI) in Hong Kong slumped 2.7% and Japan's Nikkei (N225) lost 1.5%.

Economy: The government released its latest trade data for October, showing the U.S. trade deficit dipped slightly to $43.5 billion. The number was in line with estimates, but deeper in the red from the $43.1 billion deficit in the prior month.

The morning also brings the December installment of the University of Michigan's Consumer Sentiment Index, which is expected to rise to 65.1 from 64.1 in November.

Companies: American banks saw their stocks rise significantly in premarket trading, after they cratered the day before. Goldman Sachs (GS, Fortune 500) shares were up 1.7%, Citigroup (C, Fortune 500) climbed 2.5%, Bank of America (BAC, Fortune 500) rose 1.8% and JPMorgan Chase (JPM, Fortune 500) added 1.7% before the opening bell Friday.

DuPont (DD, Fortune 500) shares plunged 4.1%, after the company also lowered its forecasts for the year. DuPont CEO Ellen Kullman cited slower growth and global economic uncertainty, as reasons for the lower outlook.

Meanwhile, Texas Instruments (TXN, Fortune 500) shares fell 6% early Friday, after the company lowered its forecasts for both fourth quarter earnings and revenue, in an announcement after the bell Thursday.

Currencies and commodities: The dollar fell against the euro and British pound, but rose slightly versus the Japanese yen.

Oil for January delivery added 8 cents to $98.42 a barrel.

Gold futures for February delivery gained $7.60 to $1,721 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.02% from 1.97% late Thursday.  To top of page

Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
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