20.10.2008 17:04

Before the bell: Futures advance, taking cue from global markets. All eyes on testimony from Fed chief Bernanke.

European shares rose in morning trading after the Netherlands said it would inject $13.4 billion into ING. Asian markets finished the session higher after South Korea said it would guarantee up to $100 billion in foreign-currency loans and pump billions into the banking sector.


Although off their best levels of the morning, futures indicate a higher start (S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +20.00.) as credit markets continue to show signs of improvement. In corporate news, Exelon (EXC) offered to acquire NRG Energy (NRG) for $26.43 per share, or $6.2 billion, in an all-stock deal. In earnings news, Eaton (ETN), Halliburton (HAL), and Hasbro (HAS) all posted better-than-expected quarterly results. Mattel (MAT) and Novartis (NVS) reported earnings that missed Wall Street's expectations. There were additional moves to shore up the financial system by overseas countries. The Dutch government is injecting 10 billion euros in ING (ING) to improve its tier 1 ratio. South Korea said it will guarantee up to $100 billion in foreign debt held by its banks and inject another $30 billion into its banking system.
Crude gained $1.91 to $73.76 a barrel in electronic trading on the New York Mercantile Exchange. OPEC is expected to cut production quotas at a meeting later this week.