Shares of Ford were up 7 percent at $8.58 before the bell after senior company executives said the automaker was on track to post its first monthly sales increase in two years.

In banking news, Barclays PLC reported an 8 percent rise in half-year profit, while HSBC Holdings PLC said its first-half profit halved from a year ago, but the results were better than the analyst consensus forecast.

“The greatest difficulty has been in financials, so the gains in HSBC and Barclays (are) adding to optimism and (suggest) that the worst may be over,” said Andre Bakhos, president of Princeton Financial Group, in New Brunswick, New Jersey.

“It’s comforting to see that we are in a global rebound in earnings.”

The Select Sector SPDR Financial ETF was up 2.2 percent before the bell.

A rise in oil prices was also poised to underpin the broader market, with U.S. front-month crude up 2.4 percent, or $1.65, to $71.10 a barrel.

S&P 500 futures rose 10 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 climbed 74 points, and Nasdaq 100 futures were 17.00 points higher.

The rise in U.S. stock index futures suggested that indexes will open up about 1 percent or more. The benchmark S&P 500 <.SPX> could begin trading at a 9-month high, very close to the psychologically important 1,000 level, after registering its best five-month winning streak since 1938 on Friday.

In Europe stocks were up more than 1 percent.

3M Co shares rose 2.4 percent to $72.22 before the bell after Goldman Sachs upgraded the Dow component to “buy” from “neutral.”

Ford, due to report its July sales later in the day, is among the primary beneficiaries of the federal government’s “Cash for Clunkers” incentive program that took effect on July 24.

The Senate on Monday is due to vote on extending the program to stimulate auto sales after the U.S. House approved $2 billion for it on top of an initial $1 billion in June.

The economic calendar includes the Institute for Supply Management’s manufacturing index due at 10 a.m. (1400 GMT). A Reuters poll of economists forecast a July reading of 46.2 from 44.8 in June.

NEW YORK, Aug 3 (Reuters)

When I was a child I could never sit still on a long road journey. I was always asking, “Are we there yet? Are we there yet? ARE WE THERE YET???” My father would always reply “Nearly, son… Nearly,” even though we were still miles from our destination.

This is exactly how the financial markets seem to me right now. It’s been more than two years since the credit crisis kicked off, and I’m getting itchy in my seat: I want to be back out there playing with the other financial (whizz) kids. But it feels like the end of this current rocky road is still on the distant horizon.

Wall Street wants you to believe things improving… that we are on the road to recovery… and that “green shoots” are starting to appear in the economy. Call me a cynic, but I’m just not convinced.

Wednesday’s central bank actions on both sides of the pond signal that we are NOT there yet. In the US, the Fed left its interest rates on hold… and dangerously close to the zero bound. And it announced that it expected economic activity to remain weak for “some time.” The Fed is also continuing with the $300 billion Treasury repurchase plan (its massive and highly experimental money printing operation).

Meanwhile, the European Central Bank launched its first ever 12-month loan auction (at the 1% benchmark rate). This will pump a whopping €442 billion into the banking system.

With the credit markets still broken, the European banks snapped up the funds. Over 1,000 banks took part. It’s no wonder. Who would say no to a 12-month loan at just 1% when you can lend to Joe Public at over 10%? There’s an arbitrage trade I’d like a piece of… in any market.

To be a true contrarian there has to be a consensus view. And at the moment, market participants are all pulling in different directions. The ‘experts’ are busy trying to call the end to the slowdown. And they’re hoping it sticks. Meanwhile, the the Fed and the Treasury continue to hose the economy down with extra liquidity. This is a brave new world. And an extremely dangerous one for rookie investors or investors reaching retirement or who are already retired – one false move in this type of market could prove fatal.

The Fed’s recent policy message should have resulted in a stock market rally. Bernanke & Co hinted at the much anticipated return to inflation (“the prices of energy and commodities have risen of late”) but then washed all the momentum out of this trade by saying “the Committee expects that inflation will remain subdued for some time”.

Markets hate nothing more than uncertainty. And until we have a more harmonious voice either direction from governments and policymakers this turmoil is going to continue. So I’m burying that impatient kid in me for now and sticking to the safe stuff. And so should you: stick to cash, gold and investment grade fixed income for now.