Futures Point Higher Following Wall Street Selloff

Updated from 6:52 a.m. EST

Premarket futures were forecasting a higher open for stocks in the U.S. Tuesday, following a massive selloff in the previous session, during which each of the three major averages lost at least 7.7%.

Futures for the S&P 500 were up 16 points at 832, and were 16 points above fair value. Nasdaq futures were adding 17 points at 1111 and were 20 points ahead of fair value.

During the previous outing, stocks sold off sharply as the National Bureau of Economic Research declared the U.S. had been in a recession for nearly a year. The first session of the month also was occasion for profit-taking following a five-day rally that capped off November.

At Monday's close, the Dow Jones Industrial Average had lost 679.95 points, or 7.7% to 8149.09, and the S&P 500 fell 80.03 points, or 8.9%, to 816.21. The Nasdaq sank 137.50, or 9%, to 1398.07.

Ahead of the new session, industrial titan General Electric (GE Quote) narrowed its fourth-quarter earnings-per-share projection to between 50 cents and 52 cents from a previous target of 50 cents to 65 cents. The company also affirmed its intention to maintain its $1.24 per share dividend in 2009.

As trading gets underway, investors will be closely watching General Motors (GM Quote), Ford (F Quote) and Chrysler. Chief executives from the automakers are slated to appear before Congress with detailed plans that show their businesses still warrant a federal bailout.

Last time the Big Three's CEOs traveled to Washington, lawmakers refused them the $25 billion they sought and berated them for, among other things, flying to the hearing on private jets.

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