(By Salman - iStockAnalyst Writer)
US stock futures edged higher on Tuesday after yesterday’s steep sell-off as investors awaited auto sales data for the month of February.
At 8:21 am ET, Standard & Poor's 500 Index futures rose 7 points to 712.50. Dow Jones Industrial Average futures advanced 53 points to 6843. Nasdaq Composite Index futures gained 5.25 points to 1091.25.
US stocks were hammered on Monday after AIG was bailed out by government following huge quarterly losses. Early on Monday, American International Group Inc (NYSE: AIG) reported a fourth quarter loss of $61.7 billion or $22.95 a share- the biggest in corporate history of US. The troubled insurer posted a loss of $5.29 billion in prior year quarter. Meanwhile, the Treasury Department and the Federal Reserve Board announced on Monday revised rescue deal for the embattled company under which it will receive further $30 billion from the government. Shares of AIG closed unchanged at 42 cents.
Early on Tuesday, embattled US bank Citigroup Inc. (NYSE:C) announced a new program to help the unemployed under which it would lower mortgage payments for some homeowners to an average of $500 a month.
Meanwhile, in a letter released late on Monday, GE (NYSE: GE) CEO Jeffrey Immelt said that the diversified US firms' reputation has been tarnished but this "environment presents an opportunity of a lifetime." He added further "2008 was a tough year, and we expect 2009 to be even tougher."
Drugstore chain Walgreens (NYSE: WAG) said that its February sales rose 3.4% to $5.09 billion. Comparable-store sales decreased 1.9%.
Chico's FAS Inc. (NYSE: CHS) reported that its fourth-quarter loss widened to $40.5 million, or 23 cents a share, from $20.5 million, or 12 cents in the prior year quarter. Revenue declined to $373.4 million from $409.3 million.
On the front of economic data, January's pending home sales is scheduled for release at 10:00 am. Auto sales figure for the month of February would be released later in the day. Investors would be also looking forward to U.S. Fed Chairman Ben Bernanke's testimony before the Senate Budget Committee. Treasury Secretary Geithner would also be testifying before a congressional panel.
European stocks were mixed in afternoon trade. At 13:38 pm London time, the U.K. FTSE retreated 53.43 points or 1.47% to 3,573.12. The German DAX and French CAC rose 0.41% and 1.07% respectively.
Asian stocks finished lower. The Nikkei 225 fell 50.43 points or 0.69% to 7,229.72. The Hang Seng index of Hong Kong dropped 283.58 points or 2.30% to 12,033.88.
NYMEX crude oil for April delivery declined as much as $1.42, or 3.1% to $43.80 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
