NEW YORK (TheStreet) -- Stock futures surged for a second day on Friday as a debt deal between Greece and its European creditors grew more likely.
S&P 500 futures were up 1.2%, Dow Jones Industrial Average futures rose 1%, and Nasdaq futures climbed 1.2%.
Global markets extended Thursday's rally after Greek Prime Minister Alexis Tsipras submitted the latest proposal of spending cuts which mirrored previously rejected suggestions from eurozone leaders. The plan includes cuts to government spending, including pensions, and increased taxes.
"As far as we can gather the 'new' Greek proposal isn't markedly different from the ideas on the table when the Greeks overwhelmingly voted against the thing over the weekend," said David Ader, analyst at CRT Capital. "We suppose that poses political problems on the domestic front ... or is couched as an attempted, but failed, effort to get a better arrangement, but as far as the markets seem concerned is all a moot point."
Athens is seeking 53.5 billion euros ($59.9 billion) in bailout money. If approved, the deal would mark the third bailout loan for Greece. It already has received 240 billion euros in funds since 2010. Eurozone leaders will review the proposal and make a decision on the plan in meetings over the weekend.
Germany's DAX surged 2.3%, France's CAC 40 jumped 3.2%, and the FTSE 100 in London added 1.4%. The Athens Stock Exchange General index added 2%.
Apple (AAPL) looked to snap a five-session losing streak on Friday, adding 1.3% in premarket trading. Since the beginning of the month, shares have dropped 4.3%, hard hit by a market selloff tied to worries over instability in Chinese markets and uncertainty in Greece.
Gap (GPS) shares were on watch after the retailer reported a 1% decline in same-store sales in June compared to an expected 0.5% drop. Total sales were flat at $1.54 billion, though rose 2% excluding currency.
American Airlines (AAL) added 2.2% after reporting traffic in June rose 2.8% with capacity increasing 2.4% to 23.9 billion available seat miles.
Unilever (UN) increased more than 5% following on an upgrade to "hold" from "underperform" at Jefferies. Analysts scrapped its bearish call given the company's outperformance against rivals Procter & Gamble (PG) and Kimberly Clark (KMB) so far this year.
Hewlett-Packard (HPQ) was under pressure after research firm IDC estimated global PC shipments fell 66.1 million in the second quarter, a factor of a strong dollar and a tough comparable after an increase in sales a year earlier. The 11.8% rate of decline accelerated significantly from a 6.7% drop in the first quarter.
Costco (COST) shares added nearly 2% in premarket trading after Oppenheimer upgraded the stock to "outperform" from "perform" and set a $160 price target. The firm said the retailer would likely raise membership fees and cut back on technology spending.