(By Balachander) U.S. stock index futures pointed to sharply higher open on the Wall Street after European leaders agreed on measures to bring down Italy's and Spain's soaring borrowing costs.
Mini Dow Industrial Average futures jumped 191.00 points to 12,717.00. The Nasdaq Futures added 48.75 points to 2,576.50. Standard and Poor's 500 futures gained 25.30 points to 1,347.70.
With little optimism surrounding the two-day European Union summit in Brussels, investors digested a set of measures from European leaders who have agreed to make use of euro area rescue funds to recapitalize the region's ailing banks. EU leaders reportedly hope for implementation of the bank agreement by July 9.
On domestic economic front, U.S. personal income rose 0.2 percent and personal spending fell less than 0.1 percent for May, a data from the Bureau of Economic Analysis showed. Economists expected income and spending to be held steady at 0.2 percent and 0.1 percent, respectively.
Meanwhile, Chicago-area purchasing managers' index for June is due for release at 9:45 am ET, followed by the University of Michigan's June consumer-sentiment data at 9:55 am.
On Thursday, U.S. stocks ended with modest losses, recovering from sharp retreat earlier in the day after the Supreme Court backed most of President Barack Obama's health-care reform law and European leaders convene for a summit to address the debt woes. The top U.S. court decided to uphold Obama's health-care overhaul law that requires that most Americans to carry health insurance by 2014 or face a penalty.
Hot Stocks Of The Day: NKE, RIMM, STZ, KBH, ACN, TIBX, SKS, FINL
In corporate news, Nike Inc. (NYSE:NKE) slumped 10.36 percent in premarket after the athletic footwear maker posted weaker-than-expected quarterly earnings amid drop in gross margins due mainly to rise in product costs and higher investments in the company's digital business.
Research In Motion Ltd. (NASDAQ:RIMM) (TSE: RIM) retreated 14.57 percent in premarket after the Blackberry maker forecast an operating loss in the second quarter and warned that it expects the next several quarters to continue to be very challenging for its business amid increasing competition and product delays. The company also plans to cut 5,000 jobs.
Constellation Brands Inc. (NYSE:STZ) surged 19.30 percent in premarket after the beverage company reported better-than-expected adjusted quarterly earnings. The company also announced it will acquire the remaining 50 percent stake of Crown Imports LLC that it doesn't already own for $1.85 billion.
KB Home (NYSE:KBH) added 9.66 percent after the homebuilder posted reported a narrower-than-forecast loss for the second quarter as revenue rose 11 percent, helped by rise in number of homes delivered and average selling prices.
Accenture Plc (NYSE:ACN) rose 3.74 percent in premarket after the provider of technology and outsourcing services posted quarterly earnings that beat market expectations and guided full year revenue growth above consensus estimates.
Tibco Software Inc. (NASDAQ:TIBX) jumped 6.04 percent in premarket after the software maker posted second quarter results topping Wall Street projections.
Finish Line Inc. (NASDAQ:FINL) posted a decline in quarterly earnings as lower margins offset growth in sales, while the retailer of athletic apparel raised its forecast for the full year. Shares edged higher in premarket.
Saks Inc. (NYSE:SKS) added 2.12 percent in premarket. JPMorgan Chase upgraded shares of the department store retailer to "Overweight" from "Neutral".
European markets surged, with Germany's DAX up 2.79 percent to trade at 6,321.39. France's CAC40 jumped 2.92 percent to trade at 3,140.73. U.K.'s FTSE 100 climbed 1.55 percent to trade at 5,578.24.
Asian markets rose tracking global cues. China's Shanghai Stock Exchange Composite Index added 1.36 percent to trade at 2,225.78. Hong Kong's Hang Seng advanced 2.19 percent to close at 19,441.46. Japan's Nikkei 225 jumped 1.50 percent to end at 9,006.78. India's BSE Sensex finished at 17,429.98, up 2.59 percent.
Ahead of the opening bell, crude oil futures rallied 3.72 percent to $80.580 per barrel. Gold futures rose 2.06 percent to $1,582.3 per ounce.
In the currency market, the euro traded 1.59 percent higher against the U.S. dollar at 1.2641, and the British pound added 0.81 percent against the greenback to 1.5645. The dollar retreated 0.03 percent against the Japanese yen at 79.4300.