Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

U.S. Stocks Head for Higher Open

Send a link to a friend

[February 12, 2008]  NEW YORK (AP) -- U.S. stocks headed for a higher open Tuesday after General Motors Corp. said it is offering a fresh round of buyouts to U.S. hourly workers in a bid to shed costs.

GM said it is offering buyouts to all 74,000 of its U.S. hourly workers who are represented by the United Auto Workers. GM also reported losses of $38.7 billion in 2007, the largest annual loss for an automotive company.

Investors appeared pleased, however, by a plan by the six largest mortgage lenders to help at-risk borrowers with all types of mortgages retain their homes. The plan, called Project Lifeline, is expected to be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, a person familiar with the plan told The Associated Press. The person confirmed earlier news reports about the plan but spoke on condition of anonymity because it had not yet been made public.

Adding to investors' somewhat upbeat mood, Credit Suisse Group sharply reduced its estimate of how much exposure it has to subprime mortgage debt. Switzerland's second largest bank said its debt tied to subprime mortgages, those given to borrowers with poor credit, fell to 1.6 billion francs ($1.45 billion) from 3.9 billion francs at the end of September. Its fourth-quarter net profit fell 72 percent because of write-downs.

Stock futures rose a day after Wall Street achieved moderate gains. The increase Monday followed a week that saw stocks end sharply lower.

Dow Jones industrial average futures rose 39, or 0.32 percent, to 12,277. Standard & Poor's 500 index futures rose 5.70, or 0.43 percent, to 1,343.90. Nasdaq 100 index futures gained 8.25, or 0.46 percent, to 1,805.50.

Bond prices showed little movement. The yield on the benchmark 10-year Treasury note, which moves opposite its price, stood flat at 3.63 percent from late Monday.

[to top of second column]

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

Light, sweet crude fell $1.29 to $92.30 per barrel in premarket electronic trading on the New York Mercantile Exchange.

GM's fourth-quarter loss totaled $722 million, or $1.28 per share, in the fourth quarter, compared with net income of $950 million a year earlier. Much of the loss relates to $622 million in costs tied to restructuring at Delphi Corp., GM's former parts business.

Diversified manufacturer 3M said late Monday it would pay a quarterly dividend of 50 cents, an increase of 4.2 percent over its previous payout. The decision by 3M, which makes products such as Scotch tape and Post-It notes, to boost its dividend is welcome news for investors amid a time of economic uncertainty.

Overseas, Japan's Nikkei stock average closed up 0.04 percent and Hong Kong's Hang Seng index rose 1.35 percent. In afternoon trading, Britain's FTSE 100 rose 1.26 percent, Germany's DAX index rose 1.40 percent, and France's CAC-40 advanced 1.42 percent.

___

On the Net:

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

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

[Associated Press; By TIM PARADIS]

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Recent articles

Back to top


 

News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor