A bright forecast late Thursday from Microsoft Corp. and quarterly results that far outpaced expectations lent strength to a notion emerging in recent days that perhaps Wall Street had been too pessimistic in its reading of the economy.

Investors looking for reasons to buy also appeared cheered by a report from the U.K.'s Evening Standard newspaper that said billionaire Wilbur Ross was in talks to acquire troubled bond insurer Ambac Financial Group Inc. Financial woes at many U.S. bond insurers have in recent weeks caused headaches for investors worldwide who have worried that the credit crisis could worsen should one of the companies buckle under an inability to draw new business.

Word of Ross' move follows comments this week by New York State regulators saying they would consider lending support to shore up the struggling bond insurance industry. The move helped reassure Wall Street and helped make room for stocks to rally in recent days.

Dow Jones industrial average futures rose 70, or 0.57 percent, to 12,435. Standard & Poor's 500 index futures rose 7.80, or 0.58 percent, to 1,360.00, and the Nasdaq composite index rose 20.00, or 1.09 percent, to 1,857.00.