Updated from 6:55 a.m. EDT

Premarket futures were suggesting a lower open for stocks in New York Monday, as traders assessed the Treasury Department's massive bailout plan for financial firms.

Futures for the

S&P 500

were down 8.2 points at 1238 and were almost 20 points below fair value.

Nasdaq

futures were down 11 points at 1729 and were 27 points short of fair value.

On Friday, the three major indices finished substantially higher. Financials led the rally after the

Securities and Exchange Commission

temporarily banned short-selling of 799 stocks in the sector. The Treasury announced that over the weekend it would iron out a plan to provide hundreds of billions of dollars to U.S. banks and brokerages to try to avert further damage from the credit crisis.

Over the weekend, the

Treasury Department drafted a plan

to lift as much as $700 billion in mortgage debt from financial-sector balance sheets.

On Sunday, the

Federal Reserve

said that

Goldman Sachs

(GS) - Get Report

and

Morgan Sanley

(MS) - Get Report

would become bank holding companies instead of investment banks. The change subjects the pair to increased government oversight and stricter capital requirements.

Goldman and Morgan

had been the final two large, independent brokerages after

Lehman Brothers

went bankrupt and

Bear Stearns

and

Merrill Lynch

(MER)

merged with large banks.

CNBC

subsequently reported that Morgan Stanley would probably not be merging with

Wachovia

(WB) - Get Report

following the

Fed's announcement

.

Shifting to commodities, crude oil was gaining $1.55 to $106.10 a barrel. Gold was adding $18.30 to $883 an ounce.

Longer-dated U.S. Treasury securities were mixed. The 10-year was up 7/32 to yield 3.78%, and the 30-year was down 12/32, yielding 4.41%. The dollar was falling vs. its major foreign competitors.

Abroad, many foreign markets were marching higher. The FTSE in London and the DAX in Frankfurt were both climbing, and the Nikkei in Japan and the Hang Seng in Hong Kong finished on the upside.