Stock futures jump as IBM spurs spending optimism

NEW YORK (Reuters) - Stock index futures rose on Thursday as a stronger-than-expected profit from technology bellwether IBM (IBM.NY) suggested that the credit turmoil is not stifling all business demand.

Shares of International Business Machines Corp, a Dow component, rose more than 4 percent before the bell, and its boost also buoyed other technology heavyweights, including Apple Inc , up 3 percent.

"The concern about the impact of crisis, 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.

Additionally, investors appeared poised to scour the market for beaten down shares, a day after Wall Street fell for sixth straight session as recession and credit fears eclipsed joint interest rate reductions by global central banks.

S&P 500 futures rose 20 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 rose 178 points and Nasdaq 100 futures gained 300 points.

Trading was likely to be light, with other market participants away for the Jewish Yom Kippur holiday.

IBM shares rose to $94.76 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.

Thursday's economic calendar includes reports on weekly jobless claims, due at 8:30 a.m., and August wholesale trade at 10 a.m..

U.S. stocks fell for a sixth straight session on Wednesday, as investors doubted that a coordinated worldwide cut in interest rates will unfreeze credit markets and avert a global recession.

(Editing by Kenneth Barry)