NEW YORK, Nov 30, 2007 (AP) -- Wall Street headed for a higher open Friday after Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way.

In a speech late Thursday, Bernanke said persistently tight credit conditions, the housing slump and high energy prices will probably create some "headwinds for the consumer in the months ahead." Although he expects the U.S. can withstand the problems without slipping into recession, Bernanke also said he expects consumers could become more cautious.

The central bank will have to be "exceptionally alert and flexible," Bernanke said.

Investors were likely to read the commitment to flexibility as a sign the bank is willing to lower interest rates again, after cutting rates at the past two meetings. The Fed meets again on Dec. 11.

There was more reassuring news for the troubled mortgage market on Friday: The Wall Street Journal reported the White House and the mortgage industry are nearing a pact that would temporarily freeze interest rates on some subprime home loans. Defaults on such loans have resulted in big losses for financial institutions worldwide.

Economic data due Friday include readings on inflation, personal income and spending and construction spending.

Dow Jones industrials futures advanced 84, or 0.60 percent, to 13,417, while Standard & Poor's 500 index futures rose 10.10, or 0.69 percent, to 1,481.50, and Nasdaq 100 index futures added 17.50, or 0.83 percent, to 2,118.00.

The Dow has piled on about 568 points over the past three sessions as investors _ now more confident that credit woes could ebb _ pulled the blue chip index back from the edge of a downward correction. On Monday, the Dow's 240-point slide was enough to bring the index to a level that was down 10 percent from its October high.

Bond prices fell. The yield on the benchmark 10-year Treasury note rose to 3.95 percent from 3.94 percent late Thursday.

Meanwhile, oil prices slipped below the $90 a barrel mark. Light, sweet crude fell $1.96 to $89.06 a barrel in premarket trading on the New York Mercantile Exchange.

Overseas markets made gains. Britain's FTSE 100 rose 0.75 percent; Germany's DAX index rose 1.18 percent and France's CAC-40 rose 0.79 percent. In Asia, Japan's Nikkei stock average closed up 1.08 percent. Hong Kong's Hang Seng index rose 0.57 percent.