Indications: Stocks futures signal Wall St. bounce; H-P rising

NEW YORK (MarketWatch) � U.S. stock futures rose on Friday, signaling investors remained willing to buy dips after a two-day pullback, with shares of Hewlett-Packard Co. expected to be in the spotlight a day after the bruised computer maker posted stronger-than-expected quarterly results.

The economic calendar offers no major data, but two top Federal Reserve officials are set to speak after minutes of the central bank�s latest policy meeting this week revealed a split over the exit path from extraordinary stimulus measures.

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S&P 500 Index futures SPH3 rose 7.5 points, or 0.5%, to 1,508.50, while futures on the Dow Jones Industrial Average DJH3 rose 73 points, or 0.5%, to 13,945.

Nasdaq 100 futures NDH3 advanced 14.75 points, or 0.5%, to 2,728.50.

Despite developments including a �negative fourth-quarter gross domestic product number, lackluster January retail sales and a renewed flare-up in Europe, equities continue to grind higher,� wrote strategists at Charles Schwab in a note.

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�It appears to us this resilience is helping to pull previously nervous investors out of cash and some fixed-income products and back into stocks. Should this nascent trend take hold, we believe it could add fuel the next move higher in the stock market as sidelined cash remains relatively high after five straight years of equity mutual fund outflows,� they said.

Stock gains this year have pushed the major indexes near record highs. Those levels, followed by a steep two-day pullback this week, have placed more attention on technical analysis -- and the trading action of the benchmark exchange-traded funds. The SPDR Dow Jones Industrial Average DIA �, the SPDR S&P 500 SPY �and the PowerShares QQQ QQQ �were all pointing higher early Friday.

Hewlett-Packard HPQ shares rose 4.4% in premarket trading. The company said late Thursday that profit and sales dropped in the fiscal first quarter, but the results still beat expectations. Also, H-P�s second-quarter forecast topped consensus estimates. See: H-P profit falls, but results beat muted views..

Reuters Enlarge Image Hewlett-Packard CEO Meg Whitman

Shares of Abercrombie & Fitch Co.ANF fell in premarket action even as the clothing retailer topped earnings forecasts.

U.S. stocks lost ground Thursday. Analysts said worries over the March 1 deadline to avoid steep federal spending cuts, potentially unsettling elections in Italy, and a rise in the Chicago Board Options Exchange Volatility Index, or VIX VIX , contributed to the weaker tone. See: U.S. stocks extend losses into second day..

Also check out: Fear index off lows as volatility spikes.

The setback also comes amid worries that the market�s recent rally remains overstretched, with major indexes still trading near multiyear highs. Some strategists argued that a strong set of corporate results has provided another source of support for the market.

With most companies having already reported, earnings growth for companies in the S&P 500 is running around 7%, noted Scott Wren, senior equity strategist at Wells Fargo, topping the Wall Street consensus for growth of around only 1%.

Click to Play Payroll tax boost crimps retailers

Wal-Mart and other retailers, restaurants and supermarkets are starting to feel the effects of the restored payroll tax as frugal customers with smaller paychecks start cutting back on purchases.

While fourth-quarter earnings don�t constitute a �big upside surprise,� they�ve been sufficient to help nudge the market higher alongside other factors such as a slowly improving labor market, early signs of a housing recovery and the Fed�s continuing stimulus efforts, Wren wrote in a note.

�Earnings have been one more piece in a positive overall puzzle. This current upside momentum is likely to carry stocks higher still, at least in the near term,� Wren said.

Federal Reserve Governor Jerome Powell, in one of his first public appearances, will join Boston Fed President Eric Rosengren in a panel discussion at 10:15 a.m. Eastern in New York. The central bankers will discuss how the fiscal policy morass is affecting the Fed�s efforts to put the economy on a sustainable footing. Fed officials often shy away from talking about fiscal policy out of fear of antagonizing lawmakers. See: What to watch on the U.S. economy on Friday.

European stocks gained ground, with the Stoxx 600 Europe index XX:SXXP up 1.3%. Equities were boosted after the Munich-based Ifo Institute�s closely watched business-climate index posted a stronger-than-expected jump. See: Europe stocks jump after German Ifo..

Asian markets were mixed, with Japanese and Australian stocks on the rebound as buyers returned after a sharp fall in the previous session. Mainland Chinese and Hong Kong shares continued a decline due to worries about potential policy tightening. See: Tokyo, Sydney stocks rise; Shanghai extends fall..

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