Stocks head for higher open
NEW YORK -- Stocks were poised to rebound Tuesday as investors anticipated strong fourth-quarter financial results from Goldman Sachs Group Inc., the Wall Street bank that has weathered this year's tight credit better than its peers.
Investors expect Goldman to post earnings of $6.61 per share, up from last year, and hope the report provides some upbeat indications that the investment banking 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 Best Buy Co.'s quarterly earnings will be another closely read report Tuesday.
Dow Jones industrial futures rose 91, or 0.68 percent, to 13,360, while Standard & Poor's 500 index futures rose 12.90, or 0.89 percent, to 1,469.70. Nasdaq 100 futures rose 15.50, or 0.76 percent, to 2,065.00.
On Monday, all three major indexes lost at least 1 percent 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.
Investors appeared more optimistic about the central banks' moves Tuesday, and also 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 Tuesday, while gold prices fell.
Light, sweet crude rose $1.07 to $91.70 a barrel in premarket trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average fell 0.27 percent, and Hong Kong's Hang Seng index rose 0.51 percent. Britain's FTSE 100 rose 0.76 percent, Germany's DAX index rose 0.81 percent and France's CAC-40 rose 0.71 percent.