Stocks are indicated sharply higher on strong corporate earnings and positive economic data in Europe. Thirty minutes before the opening bell Wednesday, stock index futures indicate that the Dow Jones Industrial Average might see a triple-digit early gain.

Corporate profits are once again in focus after a handful of widely held names, including Caterpillar (CAT), EBAY, and Qualcomm (QCOM), advanced on positive earnings news.

Meanwhile, benchmarks are broadly higher across Europe after data showed purchasing managers index increasing 56.7 in July from 56.0 in June, instead of falling to 55.2 as economists had expected. Separate data showed industrial orders up 3.8 percent, and much better than expectations of 0 percent.

France’s CAC 40 Index rallied 1.7 percent, Germany’s DAX is up 1.6 percent, and UK’s FTSE rose 1 percent.

In the US, stock index futures came off their best levels, however, after data showed filings for jobless benefits increasing by 37,000 to 464,000 in the week ended July 17. Economists were predicting a smaller increase of 18,000.

Attention will also turn again to Federal Chairman Ben Bernanke, as he begins a second day of testimony about the economy on Capital Hill. Stocks tumbled late Wednesday when the Fed Head warned that the outlook for the economy remains unusually uncertain.

After sharp gains late yesterday, bonds are seeing early losses, as money moves back to riskier assets. The benchmark ten-year Treasury is down 8/32nd and yields 2.91 percent.

The dollar is weaker, falling .25 to 86.68 against the Japanese Yen. The euro rallied .0108 to 1.2860 against the US currency.

Action in the commodities markets is mixed. Crude oil gained $1.03 to $77.58, but gold lost $5 to $1186.80 an ounce.