Wall Street heads to higher open on China stimulus

NEW YORK (AP) - Wall Street headed for a higher open Monday,
boosted by hopes that China's $586 billion economic stimulus
package will help ease symptoms of the global recession.
Futures trading in the Dow Jones industrial average and broader
market indexes rose more than 2.5 percent ahead of the opening bell
in New York. The move higher follows a rally in Asia and Europe
after China announced plans to boost its economy through a mix of
spending, subsidies, looser credit policies and tax cuts.
Also boosting U.S. markets, the government on Monday provided
new financial assistance to troubled insurance giant American
International Group Inc., including pouring $40 billion into the
company in return for partial ownership. The action was announced
jointly by the Federal Reserve and the Treasury Department. All
told, the moves, on top of the bailout of AIG announced in
September, boost aid to the company to around $150 billion.
Investors are also watching for developments with General Motors
Corp., Chrysler and Ford Motor Co. after the automakers met with
congressional leaders last week in hopes of securing financial
help.
Democratic leaders in Congress asked the Bush administration on
Saturday to provide more aid to the struggling auto industry, which
is losing money and jobs as sales have dropped to their lowest
level in a quarter century. House Speaker Nancy Pelosi and Senate
Majority Leader Harry Reid said in a letter to Treasury Secretary
Henry Paulson that the administration should consider expanding the
$700 billion bailout program to include car companies.
Dow futures jumped 184, or 2.72 percent, to 9,180. Standard &
Poor's 500 futures rose 24.90, or 2.66 percent, to 961.20. Nasdaq
100 index futures added 31.25, or 2.43 percent, to 1,319.75.
Last week, the major indexes each lost about 4 percent. Trading
this week is expected to remain volatile, but analysts have
predicted the market will remain turbulent as it tries to recover
from October's devastating losses.
With no major economic data due during the session, investors
will turn to corporate news for direction. Investors later this
week will pore over a stream of reports, including retail sales,
the labor market and consumer sentiment.
Overseas, Japan's Nikkei stock average closed up 5.81 percent,
and Hong Kong's Hang Seng index added 3.52 percent. In Europe, the
Britain's FTSE 100 rose 3.27 percent, Germany's DAX added 3.42
percent, and France's CAC-40 rose 3.74 percent.
Oil prices jumped above $63 a barrel Monday in Asia as regional
stock markets rallied on China's economic stimulus plan, which
could underpin demand for crude. A barrel of light sweet crude rose
$3.27 to $64.31 in electronic trading on the New York Mercantile
Exchange.

(Copyright 2008 by The Associated Press. All Rights Reserved.)