* IBM lends boost to investor sentiment, stock up
* Treasury said to be eyeing ownership stakes in banks.
* Jobless claims meet consensus, wholesale trade on tap
* Financials in focus after short selling ban expires
(Recasts first paragraph, adds jobless claims, updates
prices)
By Ellis Mnyandu
NEW YORK, Oct 9 (Reuters) - U.S. stock index futures
pointed to a higher Wall Street open on Thursday as a
stronger-than-expected profit from technology bellwether IBM
<IBM.N> suggested that the credit crunch is not stifling all
business demand.
Technology shares were poised to lead gains as investors
scour the market for beaten down stocks, a day after Wall
Street fell for sixth straight session as recession and credit
fears eclipsed joint interest rate reductions by global central
banks to thaw the credit freeze.
Shares of International Business Machines Corp, a Dow
component, rose 5 percent before the bell, and its boost also
buoyed other technology heavyweights, including Apple Inc
<AAPL.O>, up 14 percent.
"IBM's results are a pleasant but modest distraction from
the ongoing credit debacle," said Andre Bakhos, president of
Princeton Financial Group in Princeton, New Jersey. "Earnings
are now the focal point. People have been thinking the world is
coming to an end."
S&P 500 futures <SPc1> rose 19 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> rose 199
points and Nasdaq 100 <NDc1> futures gained 31.75 points.
Trading was likely to be light, with other market
participants away for the Jewish Yom Kippur holiday.
IBM shares rose to $95 before the bell, while Apple shares
climbed to 92.50.
Besides technology, financial shares are also in the
spotlight following the expiration of a U.S. Securities and
Exchange Commission's ban on short selling in more than 950
financial stocks.
Additionally, the New York Times reported on its Web site
that, according to government officials, the U.S. Treasury
Department is considering taking ownership stakes in many U.S.
banks to try to restore confidence.
Lowered profit estimates by some major retailers, including
TJX Cos Inc <TJX.N>, might spur some caution, nonetheless. TJX
shares fell ore than 5 percent before the bell at $26.21 after
the off-price retailer slashed its profit outlook.
On the economic front, a government report showed the
number of U.S. workers filing new claims for jobless benefits
fell 20,000 last week, in line with forecasts as the impact of
hurricanes Gustav and Ike eased. For details, see
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August wholesale trade is due at 10 a.m. (1400 GMT).
(Editing by Kenneth Barry)
