Stocks head for higher open
NEW YORK -- Stock futures rose Tuesday as investors digested earnings from Wal-Mart Stores Inc. and news of more problems at some of the world's largest banks.
Wal-Mart's fiscal fourth-quarter profit rose to $4.09 billion, or $1.02 a share, in line with expectations. The world's largest retailer said it saw improved sales in its U.S. stores and robust international growth, but pointed to the uncertain economy as a critical factor in its performance going forward.
Wal-Mart's results are seen as a barometer of consumer spending, which has been shaky in recent months.
In addition to consumer spending, Wall Street remains concerned about the credit problems facing financial institutions. British bank Barclays Group PLC revealed credit-related losses totaling $3.13 billion, up from a smaller write-down in November. Also, The Wall Street Journal reported that Lehman Brothers Holdings Inc. could see big losses due to its significant investments in commercial real estate loans.
Meanwhile, Credit Suisse, Switzerland's second-largest bank, said it has suspended "a handful" of traders in connection with the overvaluation of asset-backed securities by $2.85 billion.
There have been some signs that troubled financial institutions are finding ways to regain their footing, however. Ambac Financial Group Inc., the world's second-largest bond insurer, is discussing a plan to raise at least $2 billion in capital to maintain its superior credit rating, the Journal reported, citing people familiar with the matter.
After being closed Monday for the Presidents Day holiday, the U.S. markets were poised to rise.
Dow Jones industrial average futures rose 88, or 0.71 percent, to 12,438. Standard & Poor's 500 index futures rose 9.10, or 0.67 percent, to 1,360.40, and the Nasdaq 100 futures rose 16.50, or 0.92 percent, to 1,803.00.
The dollar was lower against most major currencies.
Light, sweet crude oil rose $2 to $97.50 per barrel in premarket electronic trading on the New York Mercantile Exchange.
In economic news, the National Association of Home Builders is scheduled to release its monthly housing index.
In corporate news, Microsoft Corp. chairman Bill Gates said the software company is not privately haggling with Yahoo over its rejected $31-per-share buyout offer. Microsoft Corp. made an unsolicited offer to buy the struggling Internet company just over two weeks ago.
Overseas, Japan's Nikkei stock average closed up 0.90 percent. In afternoon trading, Britain's FTSE 100 fell 0.57 percent, Germany's DAX index lost 0.51 percent, and France's CAC-40 fell 0.29 percent.