RTTNews - US stocks were set to rally Wednesday morning in New York after the Supreme Court Tuesday allowed the sale of Chrysler LLC's assets to Italian automaker Fiat to move forward. Asian stocks surged overnight and European shares followed suit, setting the table for the bulls on Wall Street.
As of 6:10 am ET, the Dow Futures were up 100 points, the NASDAQ Futures were up 15 points, and the S&P Futures were up 12 points.
On Tuesday, stocks were mixed after the Treasury announced that 10 of the largest U.S. financial institutions borrowing money from the Treasury are planning on paying back their loans.
The tech-heavy NASDAQ closed up by 17.73 points or 1 percent at 1,860.13 and the S&P 500 rose 3.29 points or 0.4 percent to 942.43, while the Dow slipped by 1.43 points or less than a tenth of a percent to 8,763.06.
In a plan that carries the blessing of the Obama administration, Chrysler will sell most of its top assets to Fiat. Both companies and the White House had warned that further delays by the Supreme Court could have led to Fiat's withdrawal from the deal.
The House Oversight and Government Reform Committee Tuesday said they've subpoenaed the Federal Reserve for documents, including e-mails to and from Fed Chairman Ben Bernanke, to explore the genesis of Bank of America's December purchase of Merrill Lynch.
On Thursday, the Committee is hosting Kenneth Lewis, former Chief Executive Officer of Bank of America as part of a growing investigation into whether government officials pressured the bank to withhold details about the deal from investors despite ballooning losses at the brokerage firm.
Ahead of the opening bell on Wall Street on Wednesday, traders are likely to focus on trade balance data for April from the Commerce Department. The deficit is expected to expand to a negative $29.0 billion from the previous report of a negative $27.6 billion. The report is set for release at 8:30 a.m. ET.
Later in the day, trading is likely to be impacted by the Treasury Department's budget for May and the Federal Reserve's Beige Book, which compiles commentary on recent economic activity in the 12 Fed districts.
Energy stocks may be in focus after the price of oil surged above $71 to a new multi-month high.
Tokyo stocks jumped 2 percent to a new 8-month high, while Hong Kong shares rose 4 percent. The major European shares were uniformly higher in early dealing.
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