U.S. Stocks Set to Open Higher

Stocks in the U.S. look set to open higher Monday as the U.S. government unveiled a new bailout package for American International Group and China announced a $586 billion stimulus package.

Author:: Mike Taylor
Publish date:: Nov 10, 2008 7:03 AM EST

Premarket futures were indicating stocks in New York would build on Friday's rally Monday, as the U.S. and China each unveiled new plans to prop up companies and economies wounded by the financial crisis.

Futures for the

S&P 500

were up 25 points at 961 and were 32 above fair value.

Nasdaq

futures were climbing 33 points at 1321 and were 48 ahead of fair value.

On Friday, stocks finished on the upside despite reports of heavy job losses for October and heavy third-quarter losses from automakers

Ford

(F) - Get Report

and

General Motors

(GM) - Get Report

Financial firms were in focus ahead of Monday's session. Troubled insurer

American International Group

(AIG) - Get Report

received a revamped $150 billion bailout package from the U.S. government and reported a third-quarter loss of $24.47 billion, or $9.05 a share, compared with year-earlier net income of $3.09 billion, or $1.19 a share.

Asian markets closed higher following China's announcement of a $586 billion stimulus package to bolster consumer and business confidence. European indices, including the FTSE in London and the DAX in Frankfurt, also were marking gains.

Back in the U.S.,

Citigroup

is in talks to acquire a bank, according to a report in the

Wall Street Journal

. Earlier this year, Citi had been a suitor to

Wachovia

(WB) - Get Report

, only to have its offer trumped by

Wells Fargo

(WFC) - Get Report

Outside the financials, power company

NRG

(NRG) - Get Report

late Sunday rebuffed a $6.08 billion buyout offer from

Exelon

(EXC) - Get Report

On the earnings side, financial conglomerate

Berkshire Hathaway

(BRK.A) - Get Report

announced a 77% decline in third-quarter profit that owed in part to unrealized losses on derivatives and other securities.

Mortgage company

Fannie Mae

(FNM)

and meat products producer

Tyson Foods

(TSN) - Get Report

are set to report before trading begins Monday.

Looking at commodities, crude oil was climbing $3 to $64.04. Gold was up $17.20 to $751.40 an ounce.

Longer-dated U.S. Treasury securities were falling in price. The 10-year note was losing 10/32 to yield 3.83%, and the 30-year was falling 14/32 to yield 4.3%. The dollar was losing ground vs. the euro and pound but gaining on the yen.