The Stock Indices Report

E Mini S&P settles 1219.00 up 25.00

Stock futures hit session highs today in a furious rally this afternoon as a report from the EU noted that France and Germany agreed on a 2.7 trillion dollar plan to combat Europe’s sovereign debt crisis. The agreement which was reported by Guardian has not been verified by either the French or the German government, leaves Investors skeptical of a deal as we head closer to EU summit this Weekend.  The S&P and Dow futures posted strong gains into the close with the mini Dow futures contract up more than 220 points and the mini S&P up more than two percent. On the economic front, U.S. wholesale prices rose across the board last month, pointing to inflation pressures that could limit the Fed’s leeway in providing more stimulus to a weak economy.

This weekend’s debt crisis summit should endorse the expansion of the rescue fund, the U.K. based Guardian reported, citing unnamed EU diplomats. German Chancellor Angela Merkel declined to comment on the story, instead releasing a statement that they will not discuss intermediate results of negotiations. The statement that was released plainly said, Germany and France were in “intensive talks” on bolstering the EFSF. Stocks and the Euro pared gains into the close as Dow Jones news wires quoted a source as saying the report that the fund will reach 2 trillion Euros was “totally wrong”. Global stocks started the day lower, following yesterday’s selloff, as it was reported that China’s economy had weakened. The Q3 reading of China’s GDP was down more than forecast, at 9.1 percent. Analysts expected GDP to come in at 9.5 percent. Also Moody’s Investor Services said France’s credit rating is at risk because the sovereign debt crisis has left the country with “less room to maneuver.” We have important economic numbers out tomorrow along with earnings and Fed speakers. However, the key driver remains the headlines from the EU. Investors should watch for news of another bailout as it is the main story for investors and will move the markets with large volatility.