U.S. stocks headed for a higher open on Monday as solid results from major European banks and expectations of a sales rebound for Ford Motor Co reinforced hopes that the recession is moderating.
White House and Democrats tentatively agree to auto aid… Eastman Kodak, Electronic Arts warn on outlook… Energy shares could get lift from higher oil prices
The world’s banks and lenders have suffered losses of $2.8 trillion as a result of the credit crisis, according to the Bank of England. The British central bank is calling for “tougher regulation and constraints on lending,” according to The Guardian.
“Monumental beating” is how MarketWatch is calling it this morning for U.S. stocks.
U.S. stock futures pointed to another monumental beating on Friday – with leading contracts falling as much as rules allow — as a plunge in Asia reignited concerns about the health of the global economy.
S&P 500 futures dropped 60 points to 855.20 and Nasdaq 100 futures fell 85 points to 1,168.50. Dow industrial futures fell 550 points.
All three contracts fell so much that they reached pre-specified limits that can’t be broken until pit trading opens.
Thursday’s session for U.S. stocks was erratic but generally positive, with the Dow Jones Industrial Average closing 172 points higher and the S&P 500 rising 11 points, though the Nasdaq Composite slipped 11 points.
“Investors are taking losses of up to 90% in the $1.2 trillion market for collateralized debt obligations (CDOs) tied to corporate credit,” reports Bloomberg. Much of the losses have been triggered by the failure of Lehman Brothers and Icelandic bank.