Premarket futures were indicating stocks on Wall Street would continue their rally Tuesday, as the
plans to announce an investment of $125 billion in nine large U.S. banks.
Futures for the
were up 13 points to 1030 and were 23 ahead of fair value.
futures were better by 15 points at 1473 and were 34 above fair value.
On Monday, stocks snapped back from their eight-session October losing streak with massive gains. The Dow registered its largest-ever gain in terms of points, rising 936 points, or 11%. The S&P 500 and the Nasdaq each jumped 12%. The large gains came as central banks around the world collaborated on plans to inject capital into the global financial system.
Ahead of the new session,
the Wall Street Journal
reported that the Treasury was preparing to dedicate $250 billion of the $700 billion bailout package to buying equity positions in U.S. banks.
The government would buy preferred shares in
Bank of America
Bank of New York Mellon
Goldman Sachs was undertaking some of its own maneuvers, seeking a New York state charter for its new banking subsidiary. Goldman, along with Morgan Stanley, became a bank holding company on Sept. 21. Many major commercial banks apply for charters from federal rather than state regulators.
Elsewhere in the financials, Hank Greenberg, former CEO of
, was preparing a proposal to keep the company from being taken over by the government. AIG is rushing to pay back a bridge loan from the government to avoid being seized.
, meanwhile, confirmed it was expanding on its existing stake to buy the entirety of
for $1.9 billion.
In the technology space, Internet concerns
were working with the Justice Department to try to stave off an antitrust case against a proposed ad-sharing deal between the two companies.
As for commodities, crude oil was gaining $3.20 to $84.39 a barrel. Gold was adding $9 to $851.50 an ounce.
Longer-dated U.S. Treasury securities were mixed. The 10-year note was unchanged in price, yielding 3.98%. The 30-year was losing 2-16/32 to yield 4.28%. The dollar was rallying vs. the yen but falling against the euro and pound.
Abroad, European indices including the FTSE in London and the DAX in Germany were trading higher. Japan's Nikkei closed 14.2% higher, a one-day record, and Hong Kong's Hang Seng closed with gains.