RTRS: US STOCKS-Wall St open seen flat to higher; earnings weigh
Wall Street was seen opening flat to slightly higher on Tuesday, as worries over weak earnings continued to erode confidence while investors hoped for swift action on a U.S. plan to bolster the economy.
Merck (MRK.N) was a standout after it handily beat estimates and left its 2009 profit view unchanged at a time when companies are either cutting or not issuing forecasts due to uncertainty about the year ahead. Merck was up 4.1 percent at $29.60 before the opening bell.
Washington will be in focus with votes on amendments being offered on U.S. President Barack Obama's economic stimulus package expected to start.
Investors are looking for swift passage of the nearly $900 billion package, but it faces broad Republican resistance. For more see [ID:nN02468978].
"What generally might move the markets today is a combination of what earnings look like and our assumptions as to how much of that has been priced in, but also ongoing rhetoric about the fiscal stimulus plan that's now being debated by the Senate," said Arthur Hogan, chief market analyst, Jefferies & Co in Boston.
"As we get closer to the eventuality of that passing, the market will find support."
But weak results from companies including Dow Chemical Co (DOW.N) could weigh. The largest U.S. chemicals maker reported a loss as sales and volumes were hurt by the global economic slowdown, sending its shares down 4.5 percent at $10.55 in premarket trade.
The health of Dow's business often offers a picture on the industrial sector.
S&P 500 futures SPc1 rose 2.20 points, above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 climbed 25 points, and Nasdaq 100 NDc1 futures added 3.25 points.
On Monday, the Dow Jones and S&P 500 fell as uncertainty about the Obama administration's plan to stem bank losses hit financial shares and a bleak outlook by Macy's (M.N) fueled worries the U.S. recession is worsening. But strong tech stocks helped the Nasdaq finish higher.
