A higher start is expected (S&P futures +21.40, Nasdaq +32.50). Fannie Mae reported a third quarter loss of $13.00 per share, or $29 billion, which may not be comparable to the First Call consensus estimate that called for a loss of $1.60. Ford Motor had it price target cut to $1 from $4 at Credit Suisse, citing Ford's worse-than-expected third quarter results. Earlier, Deutsche Bank downgraded General Motors to Sell from Hold and cut its price target to $0 from $4, noting without government intervention, GM may not be able to fund its U.S. operations beyond December. Separately, Deutsche Post AG plans to close all of its DHL Express service centers, cut 9,500 jobs in the U.S. and discontinue U.S.-only domestic land and air shipping, the AP reported.
Crude prices are up 7.0% to $61.04 per barrel, aided by news of China's fiscal stimulus plan.
China announced a $586 billion fiscal stimulus and the U.S. government replaced its $123 billion aid to AIG (AIG) with a larger $150 billion package. AIG also reported a third quarter loss of $3.42 per share, which was worse than the expected loss of $0.90 per share.