Futures Take Strength from Global Gains
Stock index futures pointed to a substantial gain at the open Tuesday, following Monday's late selloff, as international markets rebounded and investors pondered the effect of an upcoming expected interest-rate cut.
Normally the market would tend to tread water the session before a Federal Open Market Committee decision, but volatility shows no signs of abating.
Asian markets posted solid gain with Japan leading the way, The Nikkei finished more than 6 percent higher. Dow futures indicated a gain of more than 340 points, though fair market had the index 152 points higher.
European markets also gained, but Germany's DAX was the outlier, soaring 10 percent driven by component Volkswagen, which has more than quadrupled since Friday's close, adding another 80 percent in the current session.
VW jumped after Porsche took a larger stake in the company, triggering a huge short squeeze.
Dow component General Motors , which led the blue-chip index lower Monday, falling 8 percent, will gain attention at Tuesday's open.
GM and Cerberus Capital Management are asking the government for $10 billion to facilitate a GM/Chrysler merger, according to Reuters.
GM shares rebounded 9 percent in premarket trading while competitor Ford picked up 1.5 percent.
Meanwhile, fellow Dow component Boeing came to a tentative labor agreement with its biggest union. The airliner gained 8 percent premarket.
In earnings news, BP said its profit climbed 148 percent in the third quarterthanks to high oil prices. Shares in the energy giant climbed nearly 10 percent in premarket trading.
Also in the sector, shares of ExxonMobil rebounded to gain about 3 percent premarket after falling more than 4 percent Monday on continued weakness in the energy trade. Oil prices gained nearly $2 early to about $65 a barrel.
And business software maker SAP scrapped its 2008 revenue outlookdue the uncertainty in the global economy.