* Portuguese bond sale sees strong demand
* JPMorgan could set a 75 cent to $1 dividend
* Futures up: Dow 59 pts, S&P 6.7 pts, Nasdaq 13 pts
* For up-to-the-minute market news see []
(Updates prices, adds quote, byline)
By Rodrigo Campos
NEW YORK, Jan 12 (Reuters) - U.S. stock index futures rose
sharply on Wednesday after a healthy bond sale in Portugal and
signs of strength in the U.S. banking sector.
European shares rallied, led by banks, on hopes euro-zone
finance ministers would beef up the region's rescue fund and
after Portugal sold 1.25 billion euros ($1.62 billion) to
strong demand. Lisbon's borrowing costs fell on the 10-year
issue but rose in the five-year. For details see
[].
"Portugal is clearly the biggest factor as the market's
latest concern has been a revival of the sovereign debt issue
in Europe," said Rick Meckler, president of investment firm
LibertyView Capital Management in New York.
"Having (the latest auction) pass is taking some pressure
off sellers."
U.S. bank shares will also be in focus after JPMorgan Chase
& Co's <JPM.N> Chief Executive Jamie Dimon said the lender
could pay an annual dividend of 75 cents to a dollar once the
Federal Reserve completes stress tests of the largest U.S.
banks and gives its approval. [].
JPMorgan shares rose 1.2 percent premarket to $44.11.
"The trend for bank stocks has been of significant
improvement," said Meckler, adding JPMorgan's move is a sign
lenders may have left behind their credit weakness.
Adding to the positive sentiment, Wells Fargo raised the
U.S. bank sector to an "overweight" rating.
S&P 500 futures <SPc1> rose 6.7 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> gained 59
points and Nasdaq 100 futures <NDc1> added 13 points.
Investors will eye U.S. data from the Labor Department as
it releases import-export prices for December at 8:30 a.m.
(1330 GMT). Economists in a Reuters survey forecast a 1.2
percent rise in import prices and a 0.7 percent increase in
export prices. In November, import prices rose 1.3 percent and
export prices rose 1.5 percent.
The Fed will release its Beige Book of regional economic
conditions at 2 p.m. [].
Shares on Wall Street closed higher on Tuesday as energy
shares helped the Dow and S&P 500 end a three-day losing
streak, even as investors worried rising fuel costs will
undercut economic growth.
American International Group Inc <AIG.N> accepted a $2.16
billion cash offer for its Taiwan Nan Shan Life from a group
led by local conglomerate Ruentex, after 15 months of trying to
sell the unit. [].
No S&P 500 companies are expected to report results
Wednesday. Later in the week, Intel Corp <INTC.O> and JPMorgan
Chase results could provide further evidence the economic
recovery remains on track.
Alaska's main oil pipeline has been allowed to resume
limited operations after a leak idled 12 percent of U.S. crude
output. Crude prices <CLc1> were unchanged in early trading.
(Editing by Padraic Cassidy)
