U.S. Stocks Set to Open Higher
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 Ford Motor Company Report
and
General Motors
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.
Financial firms were in focus ahead of Monday's session. Troubled insurer
American International Group
(AIG) - Get American International Group Inc. Report
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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
(C) - Get Citigroup Inc. Report
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
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, only to have its offer trumped by
Wells Fargo
(WFC) - Get Wells Fargo & Company Report
.
Outside the financials, power company
NRG
(NRG) - Get NRG Energy Inc. Report
late Sunday rebuffed a $6.08 billion buyout offer from
Exelon
(EXC) - Get Exelon Corporation Report
.
On the earnings side, financial conglomerate
Berkshire Hathaway
(BRK.A) - Get Berkshire Hathaway Inc. 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
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and meat products producer
Tyson Foods
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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.
