Premarket futures were hinting at a higher open for U.S. stocks Monday, following an announcement that
had secured government aid that would help prevent a breakup of the enormous and troubled bank.
Futures for the
were up 13 points at 805 and were 5.7 above fair value.
futures were adding 11 points at 1102 and were 16 ahead of fair value.
On Friday, stocks fluctuated sharply throughout the day before staging a late rally that coincided with reports that President-elect Barack Obama would select New York
chief Tim Geithner to run the
Over the weekend, the Treasury, the Fed and the
Federal Deposit Insurance Corp.
announced they would move to prop up Citigroup in part by investing $20 billion of the $700 billion Troubled Asset Relief Program in Citi shares. The large stake follows an earlier $25 billion TARP investment from the government. The government agencies also will guarantee against up to $306 billion in potential loan losses by the bank.
Shares of Citi had dropped 60% in the past week on concerns about its ability to survive the credit crunch intact. On Friday, Citi executives reportedly denied speculation that the bank would sell all or part of itself to raise capital.
, which along with
took large hits last week as they failed to secure a bailout from Congress, is trying to reduce its debt and delay a large payment to a union health fund. The report indicated that such a move is an effort to meet conditions that the automaker retool its business if it hopes to get government money.
Separately, the transition team of President-elect Barack Obama said on Sunday it is working on an economic-stimulus plan to help avert the worst of an emerging economic downturn. Details of the plan include possibly allowing President Bush's tax plan to remain in place and legislation that would add or replace 2.5 million American jobs.
News of the incoming administration's plan to prop up the economy came after three banks, including
, failed on Friday.
Looking at the day's economic data, October existing-home sales from the National Association of Realtors are due out Monday.
As to commodities, crude oil was losing 3 cents to $49.90 a barrel. Gold was gaining $22.70 yo $814.50 an ounce.
Longer-dated U.S. Treasury securities were mixed. The 10-year was down 10/32, yielding 3.23%, and the 30-year was gaining 6/32 to yield 3.68%. The dollar was weakening against its major foreign competitors.
Abroad, European exchanges including the FTSE in London and the DAX in Frankfurt were marking gains. In Asia, Japan's Nikkei was closed for a holiday. Hong Kong's Hang Seng index finished with losses.