Premarket futures were indicating a higher open for stocks in New York Tuesday following a massive selloff in the previous session.

Futures for the

S&P 500

were up 34 points at 1153 and were 44 points ahead of fair value.

Nasdaq

futures were up 38 at 1550 and were 45 above fair value.

On Monday, stocks got crushed after the House of Representatives voted down the

Treasury Department's

$700 billion financial-sector stabilization plan. The

Dow Jones Industrial Average

plunged 777 points, or 7%, its worst single-day loss ever in terms of points and its worst percentage loss since Sept. 17, 2001. The S&P 500 gave up 8.8%, and the Nasdaq fell 9.1%.

Traders had anticipated passage of the program, which would provide liquidity in installments to financial firms in exchange for mortgage-backed securities and other hard-to-value assets. Ahead of Tuesday's session, lawmakers were rushing to put together another proposal and quell the market's anxiety.

Fitch Ratings said it may cut its credit rating on

Citigroup

(C) - Get Report

following the bank's announcement that it would buy

Wachovia

(WB) - Get Report

and take on $53 billion in Wachovia debt.

A report in the

Financial Times

Monday indicated that

Goldman Sachs

(GS) - Get Report

, which amid the credit crisis agreed along with

Morgan Stanley

(MS) - Get Report

to become a bank holding company instead of an investment bank, was looking to buy as much as $50 billion in assets from other banks.

Shifting to economic data, the Chicago Purchasing Managers Association is set to release its September manufacturing index. The Conference Board's consumer confidence survey is also due this morning.

In commodities, crude oil was advancing $1.26 to $97.63 a barrel. Gold was gaining $6.20 to $900.60 an ounce.

Longer-dated U.S. Treasury securities were falling in price. The 10-year was down 28/32 to yield 3.68%, and the 30-year was giving back 1-13/32, yielding 4.19%. The dollar was rising vs. its major foreign competitors.

Abroad, markets were mixed. The FTSE in London was ticking higher, and the Hang Seng in Hong Kong closed with gains. Frankfurt's DAX was taking losses, and Japan's Nikkei ended on the downside.