Before the bell: Stocks to rally on earnings, Obama's plans

Posted Jan 28th 2009 7:48AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Earnings Reports, Market Matters, Economic Data, Oil, Federal Reserve, Recession, Financial Crisis

U.S. stock futures were significantly higher Wednesday morning, indicating stocks could have a strong start on Wall Street. The possible rally that is led by financials comes after reports about an Obama administration plan where the FDIC may manage the so-called 'bad bank' that the administration is likely to set up and buy illiquid assets.

Also in focus today is the vote on Obama's stimulus plan, as well as, of course, earnings. Somehow, Yahoo! managed to beat when it reported Tuesday after the close. The Federal Reserve's statement at 2:15 pm today, and the different steps the Fed may take with rates near zero will also grab investors' attention.

Overseas, in vestors also reacted to the Obama plan and not as bad earnings numbers as expected. Asian markets rallied and bank stocks pushed European markets higher too. Meanwhile, with all this optimism following the earnings report and possible stimulus plan that could offset the lower demand seen, oil prices rose close to $42 a barrel ahead of the weekly crude inventory due out today.

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