(By Salman - iStockAnalyst Writer)US stock futures climbed higher on Tuesday on hopes Obama's massive stimulus plan would steer US economy out of recession.
At 8:31 am ET, Standard & Poor's 500 Index futures expiring in March gained 7.40 points to 934.80. Dow Jones Industrial Average futures added66 points to 8984. Nasdaq Composite Index futures increased 13.50 points to 1278.50.
President-elect Barack Obama wants the new Democratic-controlled Congress to quickly approve the stimulus plan in order to pull US economy out of recession. Obama said in a statement "The economy is very sick. The situation is getting worse. ... We have to act and act now to break the momentum of this recession. I expect to be able to sign a bill shortly after taking office. When questioned on the timing, he said, "By the end of January or the first of February." Obama is also understood to have told House Speaker Nancy Pelosi that he favors a price tag of about $775 billion for the U.S. economic stimulus package.
Japanese auto giant Toyota Motor Corp. (NYSE: TM) on Tuesday announced that it will suspend production at factories in Japan for a combined 11 days in response to a sharp drop in the global demand for cars.
General Motors Corp. (NYSE GM) said on Tuesday its sales in China rose at 6%, slower than the 18.5% registered in 2007. Total GM car sales in China totaled 1.09 million vehicles in 2008.
Dow Chemicals (NYSE: DOW) on Tuesday indicated that it may take legal action on failed Kuwait deal. Chief Executive Andrew Liveris said in a statement "PIC is in breach of contract, and we must take action to protect the interests of our company and our shareholders."
The world's largest maker of computer mouse, Logitech International SA, announced that it reduce 15% of its salaried workforce. The company also and withdrew its fiscal 2009 financial targets. Chief Executive Gerald Quindlen said in a statement "During the December quarter, the retail environment deteriorated significantly."
Cigna Corp. (NYSE: CI) said that it plans to slash 1,100 jobs, or 4% of its workforce.
Late on Monday, fertilizer company Mosaic Co. (NYSE: MOS) announced that its second quarter net earnings jumped to $959.8 million or $2.15 a share from $394.0 million or 89 cents a share in the comparable period a year ago. Quarterly revenue increased 36.9% to $3.01 billion from $2.20 billion.
A release by EU statistics office Eurostat on Tuesday showed inflation in the eurozone fell by more than expected in December to 1.6%, a 26 month low. Earlier, in November inflation had stood at 2.1%. Euro plunged against the greenback as today's data fueled rate cut hopes.
On the front of economic data, factory orders for the month of November and ISM Services for the month of December are scheduled for release at 10:00 am ET.
The Federal Open Market Committee, the policy-setting panel of the Federal Reserve, will releases minutes from its Dec. 16 meeting at 2 p.m ET.
European markets gained in afternoon trade. At 13:16 pm London time, the U.K. FTSE rose 66.78 points or 1.46% to 4,646.42. The German DAX and French CAC increased 1.65% and 1.52% respectively.
Asian stocks settled mixed. The Nikkei 225 advanced 37.72 points or 0.42% to close at 9,080.84.Hong Kong's Hang Seng Index fell 53.80 points or 0.35% to 15,509.51.
NYMEX Crude Oil for March delivery climbed as much as $1.66, or 3.4%, to $50.47 a barrel on continued Gaza violence. Oil also rose as Russia’s gas price dispute with Ukraine intensified on Tuesday.
Disclosure: Author does not own any of the stocks discussed here.
