Stock futures slightly higher as investors await weekly report on jobless claims

Stock futures inch higher ahead of open

NEW YORK — Stock futures rose slightly Wednesday as investors tried to brush off fresh worries about the health of European banks.

Strong demand at an auction for Portugal’s debt early Wednesday helped push European markets higher and reverse an initial drop in U.S. stock futures.

Major U.S. indexes retreated Tuesday after new questions surfaced about how much potentially risky government debt European banks are holding. That snapped a strong four-day rally in the U.S. where investor optimism grew following reports on employment and manufacturing that showed the economy continues to grow, although slowly.

A report due out Wednesday afternoon from the Federal Reserve could provide further insight into the pace of the domestic recovery. The Fed’s “beige book” report will break down economic activity across the country by region.

The Fed has been cautious in its statements about the economy in recent months. Any signs of encouragement from the central bank could be considered further confirmation of last week’s economic reports and restart the rally.

Ahead of the opening bell, Dow Jones industrial average futures rose 31, or 0.3 percent, to 10,369. Standard & Poor’s 500 index futures rose 3.60, or 0.3 percent, to 1,094.50, while Nasdaq 100 index futures rose 7.50, or 0.4 percent, to 1,865.00.

Bond prices dipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.64 percent from 2.60 percent with late Tuesday. Its yield is often used to help set interest rates on mortgages and other consumer loans.

In corporate news, shares of BP PLC rose after Fitch Ratings upgraded the company’s debt. The oil company also released an internal report about the oil spill in the Gulf of Mexico that deflected much of the blame to rig owner Transocean Ltd. and contractor Halliburton Co. Its shares rose $1.30, or 3.5 percent, to $38.49 in pre-opening trading.

Stocks followed European markets lower after reports questioned whether European banks might have more exposure to risky government debt than originally believed.

Global markets first fell in the spring because of European government debt concerns. Investors were worried then that governments trying to lower debt would slow a global recovery and find few buyers for new bonds. Now there are also concerns that banks throughout Europe will be hindered from expanding lending because they need to hold on to more cash to protect against potential default on the government debt they hold.

Britain’s FTSE 100 rose 0.2 percent, Germany’s DAX index gained 0.4 percent, and France’s CAC-40 rose 0.6 percent. Japan’s Nikkei stock average fell 2.2 percent.