Stocks point to moderately higher open

Wall Street headed toward a higher open Tuesday, following a now-familiar pattern of snapping back after a huge selloff. Investors, while looking for bargains, were awaiting more news about the health of retailers and automakers.

The stock market suffered one of its worst days since the start of the financial crisis on Monday as investors responded to a string of bad economic news by fleeing to the sidelines. Among the day's events: confirmation that the U.S. has been in a recession since December 2007. While the news did not come as a surprise, it underscored the growing concerns about the impact of a severe and prolonged downturn.

Some bargain hunting is to be expected Tuesday after the slide that took the Dow Jones industrials down near 680 points, but investors will also be watching for any clues about the economy.

The market, worried about consumer spending that is crucial for an economic recovery, was again focusing on retailers, some of whom were reporting third-quarter earnings. Sears Holdings Corp., battered by hefty charges and weak results at its U.S. department stores and Kmart locations, reported that it swung to a loss in the quarter. The company has previously said it will close eight more underperforming stores this year.

Monday's stock selling began on concerns about retail sales; investors were disappointed by reports of only modest sales gains during the Thanksgiving weekend. The holiday shopping season looks to be one of the weakest in decades, a troubling sign for stores and the overall economy.

But Wall Street is hopeful for some sort of resolution for the nation's top three automakers, who are scheduled to submit to Congress Tuesday their plans for remaking themselves with government money. General Motors Corp., Ford Motor Co. and Chrysler LLC are seeking $25 billion in government support.

Major carmakers are also expected to report U.S. sales figures for the month of November Tuesday, with analysts expecting grim results as the economic recession continues to curtail demand.

Dow Jones industrial average futures rose 175, or 2.15 percent, to 8,314. Standard & Poor's 500 index futures rose 19.50, or 2.39 percent, to 835.30, while Nasdaq 100 index futures gained 25.50, or 2.33 percent, to 1,120.00.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.72 percent from 2.76 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.11 percent from 0.03 percent late Monday.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude slipped 12 cents to $49.16 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 6.35 percent. In afternoon trading, Britain's FTSE 100 was up 0.72 percent, Germany's DAX index was up 2.05 percent, and France's CAC-40 was down 1.26 percent.

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