Markets poised for a rebound Positive earnings reports from EA, Adobe, Time Warner could lead a turnaround at the open. August 2 2006: 6:38 AM EDT
NEW YORK (CNNMoney.com) -- Several key earnings reports, including Time Warner and Electronic Arts, could propel U.S. stocks higher Wednesday, ending a two-day losing streak.
At 6:30 a.m. ET, Nasdaq and S&P futures were higher, indicating a positive start for the major indexes.
Stocks fell Monday and Tuesday as worries about oil prices and how much longer the Federal Reserve will keep raising rates gripped investors.
In earnings news, CNNMoney.com parent Time Warner (Charts) reported second-quarter earnings that slightly exceeded expectations, and also confirmed plans to revamp the strategy for its struggling AOL Internet division. (Full story.)
Shares of Electronic Arts (Charts) jumped in pre-market trade after the maker of "Madden" and other games posted a smaller-than-expected loss and said revenue in the current quarter should top analyst estimates.
Adobe Systems (Charts) stock was also up before the bell after the software maker said Tuesday it expects to meet its third-quarter financial target.
Later in the morning, Dow component Procter & Gamble (Charts) will report.
In merger news, private equity firms Kohlberg Kravis Roberts & Co. and Silver Lake Partners have won the bidding for Philips Electronics (Charts)' semiconductor division at about $10.3 billion, the Wall Street Journal reported.
Oil prices rose, with U.S. light crude up 32 cents to $75.23 a barrel in electronic trading and Brent crude traded in London up 32 cents to $76.21 ahead of the Energy Information Administration's weekly inventory report at 10:30 a.m. ET.
Treasury prices gained, lowering the yield on the 10-year note to 4.96 percent from 4.97 percent late Tuesday. Bond prices and yields move in opposite directions.
The dollar was lower against the euro and the yen.
Most Asian markets ended slightly higher, while European shares were up in midday trading.
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