US stocks: Wall St rebounds

European stocks bounced back from a two-year low after the court rejected lawsuits aimed at blocking the country’s participation in aid to Greece and other nations.

But the court said the government must first get approval from a parliamentary committee,which could further slow a response. The FTSEurofirst 300 index of top European shares increased 2.8 per cent.

The key is European banks,said Jack DeGan,chief investment officer at Harbor Advisory Corp in Portsmouth,New Hampshire. We are trading day to day on the progress of the ECB (European Central Bank) and the European officials in dealing with their credit crisis,and everyday you get a piece of news that will move our market. Today,it was good.

The Dow Jones industrial average jumped 143.68 points,or 1.29 per cent,at 11,282.98. The Standard & Poor’s 500 Index was up 16.66 points,or 1.43 per cent,at 1,181.90. The Nasdaq Composite Index put on 38.02 points,or 1.54 per cent,at 2,511.85.

Yahoo Inc shares jumped 6 per cent to $13.68 after its chairman,Roy Bostock,abruptly fired Chief Executive Carol Bartz on Tuesday,ending a tumultuous tenure marked by stagnation and a rift with Chinese partner Alibaba.

Bank of America Corp rose 4.4 per cent to $7.31 after the heads of its consumer banking and global wealth and investment management units left in a management shake-up. The Dow component has lost almost half of its market value this year.

The CBOE Volatility index,Wall Street’s so-called fear gauge,fell 7.5 per cent to 34.24 after spiking 9 per cent on Tuesday. The index usually moves inversely to the S&P 500.

US stock futures rebound after 3 days

US stock index futures rose on Wednesday,following a three-day equities decline,on hopes the European debt crisis might ease after Germany’s top court smoothed the way for Berlin’s participation in bailout packages.

European stocks rebounded from a two-year low,rising 2 percent,after the German court rejected a series of lawsuits aimed at blocking the country’s participation in bailouts for Greece and other euro zone countries.

The court also said the government must seek approval of a parliamentary committee before granting aid,which could further slow a response for help.

We’ve been in a trading range and yesterday we hit the bottom of that. The news out of Europe looks positive for the market,but I see this as a short-term technical rebound,said Peter Cardillo,chief market economist at Rockwell Global Capital in New York.

Yahoo Inc will be in the spotlight after Chairman Roy Bostock fired Chief Executive Carol Bartz over the phone on Tuesday. Chief Financial Officer Tim Morse took over as interim CEO. Yahoo shares rose 6.5 percent to $13.75 in premarket trade.

Nvidia Corp gained 5.2 percent to $13.87 premarket after the chipmaker forecast sales well above expectations.

Bank of America Corp,which has lost almost half of its market value this year,said the heads of consumer banking and global wealth and investment management left in a broad reorganization. The stock rose 2.7 percent to $7.18 premarket.

S&P 500 futures advanced 11.6 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 were up 103 points,and Nasdaq 100 futures gained 25.25 points.

U.S. President Barack Obama,facing waning confidence among Americans in his economic stewardship,plans some $300 billion in tax cuts and government spending as part of a job-creating package,according to various reports. Obama will unveil his plan in a speech on Thursday.

U.S. stocks fell for a third day on Tuesday on fears Europe was failing to tackle its debt crisis,prompting worries the market was heading to new lows for the year.