Stock index futures pointed to a higher opening on Wall Street on Tuesday, bouncing back from recent weakness as investors braced for a flurry of corporate results, as well as for U.S. auto sales data for January.
At 0922 GMT futures for the S&P 500 were up 0.4 percent, Dow Jones futures were up 0.4 percent and Nasdaq 100 futures were up 0.7 percent.
Companies due to report on Tuesday include D.R. Horton (DHI.N), Emerson Electric (EMR.N), Rockwell Collins (COL.N), Walt Disney (DIS.N), Archer Daniels Midlandn>, Electronic Arts (ERTS.O), Northrop Grumman (NOC.N), Avon Products (AVP.N), Merck & Co. (MRK.N), MetLife (MET.N), Motorola (MOT.N), Schering-Plough (SGP.N), United Parcel Service (UPS.N) and Yum! Brands (YUM.N).
U.S. auto sales for January are expected to have dropped to a 27-year low, extending a 15-month downturn and adding weight to the view that the hard-hit sector will remain a drag on the economy in the current quarter.
Major automakers are scheduled to announce January sales results on Tuesday. The releases by General Motors Corp (GM.N), Toyota Motor Corp (7203.T), Ford Motor Co (F.N) and others will represent the first indicators of the shell-shocked state of U.S. consumer confidence for 2009.
President Barack Obama acknowledged differences but demanded quick action on Monday as the Democratic-led U.S. Senate opened the debate on a near $900 billion economic stimulus package facing broad Republican resistance.
The Bank of Japan on Tuesday pledged to spend $11 billion to buy shares held by Japanese banks to ease the pain from the global financial crisis, reviving a scheme launched earlier this decade to head off a domestic banking crisis.
Economic indicators on tap for Tuesday also include data on December pending home sales.
Citigroup (C.N) plans to use some $36.5 billion of its U.S. government capital infusion for new mortgages, credit card loans and to buy mortgage-backed securities in the coming months, the Associated Press reported on Monday.
Separately, the bank is exploring the possibility of backing out of a near $400 million marketing deal with the New York Mets amid concerns over how lenders are using government bailout money, the Wall Street Journal said, citing people familiar with the matter.
The lender plans to start auctioning its Japanese brokerage as early as this month, and Japan's top three banks are expected to bid in a deal likely to be worth up to $3.4 billion, sources with knowledge of the matter said on Tuesday.
Bank of America Corp (BAC.N) and Merrill Lynch agreed on a plan to pay up to $5.8 billion in bonuses to employees of the combined firm as BofA moved to take over the ailing investment bank, the Wall Street Journal said.
Vodafone Group (VOD.L), the world's largest mobile phone group by sales, beat third-quarter forecasts for revenues on Tuesday and increased its guidance to reflect foreign exchange movements.
Italian carmaker Fiat SpA (FIA.MI) is still analyzing Chrysler LLC for its intended alliance with the company but will conclude so Chrysler meets a February 17 U.S. government deadline, Fiat's CEO told the Wall Street Journal.
Swiss bank UBS AG (UBSN.VX) (UBS.N) held talks with Morgan Stanley (MS.N) late last year over the sale of its U.S. brokerage unit, UBS Financial Services, a source familiar with the matter said.
On Monday the Dow Jones and S&P 500 indexes lost ground as uncertainty about the Obama administration's plan to shore up banks' balance sheets dragged financial stocks and a grim outlook by Macy's (M.N) highlighted concerns the U.S. economic slowdown was worsening. But the bet that technology stocks might be among early beneficiaries from a likely economic stimulus helped boost the Nasdaq.
The Dow Jones industrial average (.DJI) shed 64.11 points, or 0.80 percent, to end at 7,936.75 — its lowest closing level so far in 2009. The Standard & Poor's 500 Index (.SPX) dipped 0.45 point, or 0.05 percent, to 825.43. The Nasdaq Composite Index (.IXIC) gained 18.01 points, or 1.22 percent, to 1,494.43.
