(By Salman - iStockAnalyst Writer)US stock futures advanced on Tuesday after Moody's said that it will maintain U.S. government's AAA credit rating.
At 8:29 am ET,
Standard & Poor's 500 Index futures rose 5.10 points to 893.70.
Dow Jones Industrial Average futures jumped 41 points to 8324.
Nasdaq Composite Index futures climbed 4 points to 1432.
Moody's Investors Service said on Tuesday that the U.S. government's AAA credit rating is safe with a stable outlook, but warns the rating could be at risk if lawmakers can't find a way to rein in public debt.
According to the Wall Street Journal,
U.S. Energy Department plans to disclose that
Ford Motor Co (
NYSE: F),
Tesla Motors Inc and
Nissan Motor Co (
NasdaqCM: NSANY) will be among the beneficiaries of a $25 billion loan program created by Congress to help auto makers retool factories for producing fuel-efficient vehicles.
Meanwhile,
Toyota Motor Corp. (
NYSE: TM) confirmed Akio Toyoda as its new president on Tuesday, promoting the grandson of the company's founder to guide the world's No.1 automaker through the worst economic recession in decades.
Late on Monday,
Rambus Inc (
NASDAQ: RMBS) trimmed its revenue outlook for the second quarter and projected higher litigation costs. The chip designer expects to report revenue in the range of $26.7 million to $27.2 million for the quarter, down from its previous forecast of $27 million to $30 million.
Early on Tuesday,
BMC Software Inc. (
NYSE: BMC) reaffirmed its prior fiscal-year guidance at the company's investor day in New York. The maker of business software said it expects to report adjusted earnings of $2.37 to $2.47 a share, excluding special items totaling about 60 cents to 64 cents. It also said it sees cash flow from operations of $600 million to $650 million.
On the economic front,
existing home sales for May is due for the release at 10:00 am ET.
US stocks plunged on Monday on renewed jitters about the global economy. Stocks came under pressure after World Bank said on Monday that the global economy will contract 2.9% in 2009, deeper than the 1.7% decline it projected in March.
European stocks advanced in afternoon trade. At 13:06 pm London time, the UK FTSE rose 15.02 points or 0.35% to 4,249.07. The German DAX and French CAC increased 0.71% and 0.09% respectively.
Asian stocks finished with losses. The Nikkei 225 dropped 276.66 points or 2.82% to end at 9,549.61. The Hang Seng index of Hong Kong fell 521.18 points or 2.89% to 17,538.37.
Disclosure: Author does not own any of the stocks discussed here.
