Stock futures jump after Bernanke comments

NEW YORK (AP) — Stock futures jumped this morning after Federal Reserve chairman Ben Bernanke reiterated the central bank is ready to do more to stimulate the sluggish economy.

Bernanke’s comments were the latest confirmation of what is already widely expected: The central bank is about to ramp up its purchase of Treasury bonds to spark growth.

Upbeat economic reports were also adding strength to the market. Retail sales climbed in September by more than economists had forecast. Manufacturing activity in New York surged in October and pointed to continued expansion in the coming months.

Nasdaq 100 futures got an extra lift from Google Inc., whose shares skyrocketed after the Internet search giant reported a big jump in earnings. A disappointing drop in revenue at General Electric Co. hurt its shares and were a slight drag on other indexes.

Ahead of the opening bell, Dow Jones industrial average futures rose 40, or 0.4 percent, to 11,092. Standard & Poor’s 500 index futures rose 4.80, or 0.4 percent, to 1,178.30, while Nasdaq 100 futures rose 10.25, or 0.5 percent, to 2,072.25. Futures had been pointing to a small decline in stocks Friday before Bernanke began his speech in Boston.

The Fed has hinted in recent weeks it would resume a program it ran during the recession to stimulate the economy. The program is aimed at driving interest rates down from already low levels in an effort to spark borrowing and spending by companies and consumers.

More spending, could in turn, would lift corporate sales and lead to more jobs. High unemployment remains one of the biggest drags on the economy.