(By Salman - iStockAnalyst Writer)
US stock futures advanced on Tuesday after comments from Citigroup CEO and Fed chairman helped ease concerns over the health of banking system.
At 8:24 am ET, Standard & Poor's 500 Index futures rose 13.10 points to 689. Dow Jones Industrial Average futures increased 119 points to 6647. Nasdaq Composite Index futures gained 17.75 points to 1087.25.
In an internal memo Citigroup CEO Vikram Pandit wrote “I am most encouraged with the strength of our business so far in 2009. In fact, we are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007.” Pandit said further that he is disappointed with the current stock price and the "broad-based misperceptions about our company and its financial position.” Shares of Citigroup Inc. (NYSE: C) jumped over 15% in European trade. Bank of America rallied (NYSE: BAC) 11% in Frankfurt.
Also, in a speech in Washington, Fed chairman Ben Bernanke said that big banks would not be allowed to fail.
Meanwhile, Dow Chemical Co. (NYSE: DOW) reached a new agreement with Rohm and Haas Co. (NYSE: ROH) to complete its acquisition by April 1.
Early on Tuesday, Brown-Forman Corp. (NYSE: BF-A) reported that its third-quarter net income rose to $123 million, or 81 cents a share, from $116 million, or 75 cents a share, in the same period last year. Revenue decreased to $784 million from $877 million.
Late on Tuesday, convenience store operator Casey's General Stores Inc. (NASDAQ: CASY) reported that fiscal third-quarter net income climbed to $14 million, or 28 cents a share, from $13 million, or 26 cents a share, in the year ago quarter. Revenue dropped to $848.8 million from $1.15 billion.
According to reports, Genetech (NYSE: DNA) is nearing a deal to be acquired by Switzerland-based Roche Holding for $95 a share.
On the front of economic data, January’s wholesale inventory is due for release at 10:00 am ET.
European stocks gained in afternoon trade. At 12:08 pm London time, the U.K. FTSE rose 41.43 points or 1.17% to 3,583.83. The German DAX and French CAC increased 1.54% and 1.12% respectively.
Asian stocks finished mixed. The Nikkei 225 fell 31.05 points or 0.44% to 7,054.98. The Hang Seng index of Hong Kong advanced 349.47 points or 3.08% to 11,694.05.
NYMEX crude oil for April delivery climbed as much as 74 cents or 1.6% to $47.81 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
