Stocks point to moderately higher open

[December 02, 2008]  NEW YORK (AP) -- Wall Street headed toward a higher open Tuesday, following its now-familiar pattern of snapping back after a huge selloff. But investors were closely watching for any news about retailers and automakers.

The stock market suffered one of its worst days since the start of the financial crisis Monday as investors responded to a string of bad economy news by fleeing to the sidelines. Among the day's events: confirmation that the U.S. has been in a recession since December 2007. While the news did not come as a surprise, it underscored the growing concerns about the impact of a severe and prolonged downturn.

While some bargain hunting is to be expected Tuesday after the slide that took the Dow Jones industrials down near 680 points, investors will also be watching for any signs that the economy could be improving, or, at the very least, not getting worse.

Retailers were continuing to report disappointing third-quarter earnings. Battered by hefty charges and weak results at its U.S. department stores and Kmart locations, Sears Holdings Corp. said it swung to a loss in the third quarter. The company also said it will close eight more underperforming stores this year.

The retail industry's problems have kept Wall Street on edge in recent weeks as consumer spending accounts for two-thirds of the U.S. economy. The holiday shopping season now under way looks to be one of the weakest in decades, and early reports of only modest sales gains during the Thanksgiving weekend helped fuel Monday's stock decline.

Wall Street is hopeful for some sort of resolution for the nation's top three automakers, who are scheduled to submit to Congress Tuesday their plans for remaking themselves with government money. General Motors Corp., Ford Motor Co. and Chrysler LLC are seeking $25 billion in government support.

Major carmakers are also expected to report U.S. sales figures for the month of November Tuesday, with analysts expecting grim results as the economic recession continues to curtail demand.

Dow Jones industrial average futures rose 128, or 1.57 percent, to 8,267. Standard & Poor's 500 index futures rose 14.30, or 1.75 percent, to 830.10, while Nasdaq 100 index futures gained 19.00, or 1.74 percent, to 1,113.50.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.71 percent from 2.76 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.11 percent from 0.03 percent late Monday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude slipped 69 cents to $48.59 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 6.35 percent. In afternoon trading, Britain's FTSE 100 was up 0.11 percent, Germany's DAX index was up 1.30 percent, and France's CAC-40 was down 0.12 percent.

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On the Net:

New York Stock Exchange: http://www.nyse.com/

Nasdaq Stock Market: http://www.nasdaq.com/

[Associated Press; By SARA LEPRO]

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