Early trading is rebounding from negative pre-market sentiment in the face of a huge surprise from the latest U.S. durable goods orders report. The headline number blew away expectations, coming in at 8.7% for July. Excluding transports, the number was up 3.9%. Economists were expecting a 0.5% increase.

Stock futures rallied strongly on the news. Economists will be looking closely at the August consumer confidence numbers due out in the U.S. later this morning.

Stocks had been looking lower due to a statement from Intel Corp.’s chief executive that he doesn’t foresee any increase in the demand for PCs until the end of the year. That statement was whacking tech stocks.

But in Europe, stocks were up ahead of the durables numbers, suggesting that the U.S. recovery remains intact. Oil stocks are leading the way higher on
higher crude prices, amid fears of a U.S. attack on Iraq. The London FTSE has gained three points to 4393. The Paris CAC 40 is up 38 points to 3510. The German DAX has added 21 points to 3805.

Overnight in Asia, stocks traded down on the Intel news. The Nikkei lost 160 points to 9907. And, the Hang Seng dropped 41 points to 10186.

In earnings news, Ketch Energy is reporting net earnings for the quarter, ended June 30, were $0.5 million compared to net earnings of $5.3 million for the quarter in 2001.

01 Communique Laboratory Inc. reported a third quarter net loss of $995,405 compared to a net loss of $2,423,496 for the same period in fiscal 2001.

Alliance Atlantis Communications Inc. announced its net earnings for the period were $9.7 million, compared to $14.2 million in the same period last
year.