Stocks Head For Higher Open On Wall Street
Tuesday, December 18th 2007, 7:50 am
By: News On 6
NEW YORK (AP) _ Stocks were poised to rebound Tuesday, with investors pleased about a solid profit gain at Goldman Sachs Group Inc., the Wall Street bank that has weathered this year's tight credit better than its peers.
Goldman posted earnings of $7.01 per share, up from last year and above the average analyst forecast. Investors hope the upcoming conference call with the bank's executives provides some upbeat indications that the industry is headed for a more profitable year in 2008.
In addition to the financial sector, market participants have been worried about the health of the consumer, so a better-than-expected rise in quarterly earnings at electronics retailer Best Buy Co. came as a welcome relief. Adobe Systems Inc. also topped analysts' predictions late Monday, posting a 21 % increase in profit.
Dow Jones industrial futures rose 92, or 0.69 %, to 13,361, while Standard & Poor's 500 index futures rose 13.10, or 0.90 %, to 1,469.90. Nasdaq 100 futures rose 16.50, or 0.81 %, to 2,066.00.
On Monday, all three major indexes lost at least 1 % due to ongoing worries about the possibility that prices will keeping rising despite a weakening economy.
The tumbles came even as the Federal Reserve auctioned off $20 billion in 28-day credit, and as the European Central Bank pledged to supply euro-zone institutions unlimited two-week funds at a fixed rate.
The central banks' actions are intended to bring demand back into the dried-up financial system. On Tuesday, the Bank of England also said will offer additional reserves to lenders.
Investors appeared more optimistic about the central banks' moves Tuesday, and waited for the Fed to reveal a plan to give people taking out home mortgages new protections against questionable lending practices _ particularly to subprime borrowers, whose inability to keep up with their loan payments has led to this year's spike in foreclosures and credit crunch.
In economic data, the Commerce Department is scheduled to release at 8:30 a.m. EST its November reading on new home construction.
The dollar rose against other major currencies, while gold prices fell.
Light, sweet crude rose $1.26 to $91.89 a barrel in premarket trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average fell 0.27 %, and Hong Kong's Hang Seng index rose 0.51 %. Britain's FTSE 100 rose 0.84 %, Germany's DAX index rose 1.27 % and France's CAC-40 rose 1.10 %.