US STOCKS-Futures gain on profit optimism, GE upgrade

                                

                                
 * Earnings, recovery optimism boost sentiment
                                
 * GE shares rises after upgrade from Goldman Sachs
                                
 * Weekly jobless claims; debt auction on tap
                                
 * For up-to-the-minute market news click [STXNEWS/US]
                                
 (Updates prices, adds byline)
                                
 By Ellis Mnyandu
                                
 NEW YORK, July 30 (Reuters) - U.S. stock index futures rose
on Thursday following another string of stronger-than-expected
quarterly corporate profits, a broker upgrade for General
Electric Co <GE.N>, and fresh indications that the global
economic downturn is easing.
                                
 Companies posting solid results before the bell included
AON Corp  <AOC.N> and industrial conglomerate Tyco
International Ltd <TYC.N>.
                                
 Goldman Sachs raised its recommendation on GE to "buy,"
saying comments made by the chairman of a key congressional
committee suggests a decreased chance of a break up of the
finance arm of the diversified industrial manufacturer.
                                
 U.S. House Financial Services Committee Chairman Barney
Frank in an interview with Bloomberg late on Wednesday
suggested there was broadening support for regulatory reform
that would not mandate the separation of GE Capital, Goldman
analysts said. For details, see [ID:nBNG467629]
                                
 GE shares rose 5.5 percent to $12.94 before the bell.
                                
 "A lot of this is a follow up of the resilience we've seen
in the market over a couple of weeks. The clear sentiment is to
be buying on any dips," said Matt McCall, president of Penn
Financial Group in Ridgewood, New Jersey.
                                
 "We get buying into the close on a consistent basis. The
trend right now is higher. We have earnings improving, and
that's giving people the reason buy."
                                
 S&P 500 futures <SPc1> rose 6.6 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> climbed
53 points, and Nasdaq 100 <NDc1> futures were 8.5 points
higher.
                                
 Investor sentiment was also buoyed by signs that the global
recession is abating following upbeat economic reports from
Europe.
                                
 European stocks were up more than 1 percent after data
showed July euro zone economic sentiment rose to its highest
level in eight months, while German unemployment unexpectedly
fell for the first time in July.
                                
 International Paper Co <IP.N> posted a 40 percent drop in
second-quarter profit but said the worst of the economic
downturn had passed, and it was seeing improvements in some
markets. [ID:nN30329697]. IP shares rose 3.3 percent to $19 in
premarket trading.
                                
 Motorola Inc <MOT.N> shares rose 3.5 percent to $6.80
before the bell after the mobile phone maker swung to a
quarterly profit. [ID:nN30257217]
                                
 Exxon Mobil Corp <XOM.N> shares fell 1 percent after it
reported second-quarter earnings.
                                
 The U.S. economic calendar includes the weekly report on
initial jobless claims at 8:30 a.m. (1230 GMT). A Reuters
survey of economists forecast claims to have risen to 570,000
from 554,000 the previous week.
                                
 Also on the calendar is a record $28 billion 7-year note
auction from the U.S. Treasury, which could make investors
cautious on the heels of poor demand for two government
auctions this week.
 (Reporting by Ellis Mnyandu; Editing by Padraic Cassidy)