Before the bell: Futures suggest a sharply higher start.
U.S. stocks looked set to rebound Friday from this week's sharp descent
after a report said financial giant Citigroup is considering putting
itself on the block.
The Wall Street Journal reported that Citigroup's board of directors is
scheduled to meet Friday to discuss ways to reverse the stock's slide.
Those measures include the possibility of selling pieces of the company
or even an outright sale, the report said, citing people familiar with
the situation.
Shares of Citigroup plunged 26% Thursday to a 15-year low. The
fall came even after Saudi Prince and long-time Citigroup investor
Alwaleed Bin Talal said he increased his stake to 5% following the U.S.
government's $25 billion bailout for the troubled bank. Before the
bailout, the prince held a 4% stake.
Citigroup, one of the hardest-hit financial firms during the credit
crisis, has lost more than $20 billion in the past four quarters. The
financial giant is facing tough economic conditions ahead, which could
translate to further losses tied to consumer and business loans.
As yet another sign of the financial crisis, Washington Mutual
said Thursday that it was eliminating 1,600 jobs in the San Francisco
area, following its failure on Sept. 29. Those cuts will bring to total
WaMu workforce down to 11,000.
Market plunge: Stocks are poised for a rebound after falling deeply
this week. On Thursday, the S&P 500 plunged to an 11-1/2 year low.
Both the Dow and Nasdaq closed at their lowest points since March 12,
2003, which was just above the low of the last bear market.
The drop was fueled by recession fears. The mood was also gloomy with
the prospects of an auto bailout this week all but dead. Democratic
leaders said Thursday that Congress would return in December to
consider extending a $25 billion lifeline for troubled U.S. automakers
if the companies devise a "viable" recovery plan.
Companies: Dell reported a decline in quarterly earnings and
sales after the market close Thursday. The PC maker said the global
economic slowdown has caused consumers and businesses to pull back on
technology spending.
Retailer Gap also posted its quarterly financial results late
Thursday. The company reported higher quarterly earnings that edged
past analysts' estimates.
