This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stock Market Today: Futures Recover as Wells Fargo Meets Estimates, Portugal Fears Subside

NEW YORK (TheStreet) -- U.S. stock futures were higher Friday as European markets recovered from a bout of market contagion fears that were sparked by a missed debt service payment by a parent company of Portugal's Banco Espirito Santo.

Portugal's second-largest bank by market value on late Thursday reassured the markets that potential losses resulting from its exposure to Espirito Santo Group will not compromise its compliance with regulatory capital requirements. Currently it has an exposure of 1.18 billion euros to Grupo Espirito Santo.

Dow Jones Industrial Average futures were rising 26 points, or 26.93 points above fair value, to 16,868, with the index on the verge of crossing the 17,000 psychological threshold once again. S&P 500 futures were up 3.25 points, or 2.97 points above fair value, to 1,961. Nasdaq futures were climbing 11.7 points, or 12.71 points above fair value, to 3,885.5. U.S. markets climbed out of session lows by market close Thursday, but stayed in the red for the day.

July 11 Premarket Briefing: 10 Things You Should Know

Stock Market Today: Markets Recover From Worst Levels but Portugal Concerns Remain

European Markets Shake off Espirito Santo Worries, as Tobacco Lifts London

"The equity market remains remarkably resilient, in our view, with the S&P 500 up 6.2% so far this year," noted Gina Martin Adams, senior analyst at Wells Fargo Securities. "As the market continues to normalize with the deceleration in Fed intervention, we continue to believe dispersion among sectors should rise," she added. Adams sees breakouts in integrated the oil and gas, and tobacco sectors; a breakdown in banks; and a break-up in Internet stocks.

With the markets stable in the face of contagion fears, investors are now looking to second-quarter earnings season for the next set of potential catalysts. S&P Capital IQ reported that S&P 500 earnings growth is expected to come in at 6.5% year ove -year, with EPS of $28.67 for the second quarter. Only 25 companies have reported earnings results for the second quarter so far, with 16 of those companies beating analysts' estimates, seven missing, and two meeting.

Wells Fargo (WFC - Get Report), the nation's largest mortgage lender, posted on Friday in-line second-quarter earnings of $1.01 a share on better-than-expected revenue of $21.1 billion. The Wall Street revenue consensus target was $20.84 billion. The banking giant reported total average loans of $831 billion, up $32.7 billion or 4%, from the 2013 second quarter and noted that it increased its quarterly common stock dividend by 17% to 35 cents a share in the second quarter.

Shares were off 0.42% in premarket trading.

Other companies taking the spotlight include Alibaba, Reynolds American (RAI - Get Report) and Lorillard (LO - Get Report), (AMZN), and Chevron (CVX).

Alibaba, the Chinese e-commerce company, plans to launch its IPO process as soon as the end of the month, people familiar with the matter told The Wall Street Journal. Reynolds American and Lorillard are closing in on a complex merger. is seeking permission from U.S. regulators to test its delivery drones near Seattle, Reuters reported. Chevron said earnings for the second quarter are expected to rise from the first quarter because of gains on asset sales.

-- By Andrea Tse in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LO $68.49 0.10%
RAI $75.88 0.34%
WFC $55.55 1.39%
AAPL $129.09 0.49%
FB $79.75 0.99%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs