US stocks were poised to pull back Tuesday morning in New York following a huge rally in the previous session, with all eyes on Capitol Hill, where Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner will testify at the AIG hearing.
As of 6:10 am ET, the S&P Futures were down 8 points, the NASDAQ Futures were down 9 points, and the Dow Futures were down 52 points.
Wall Street shares soared on Monday after the Obama administration revealed its plan to help banks sell toxic assets.
The plan unveiled by Treasury Secretary Timothy Geithner will set up an investment fund to buy mortgage-related securities and other assets that are hurting the balance sheets of banks. The new program would combine taxpayer money with private funds, aiming to buy loans and free up banks to renew lending.
The Dow closed up 497.48 points or 6.8 percent at 7,775.86, the NASDAQ closed up 98.50 points or 6.8 percent at 1,555.77 and the S&P 500 closed up 54.38 points or 7.1 percent at 822.92.
Tuesday will be a busy day in Washington DC, as Bernanke and Geithner will appear before a House Financial Services Committee hearing on the government's role in saving AIG, which has been propped up to the tune of nearly $200 billion dollars in taxpayer money.
Monday, New York State's attorney general, Andrew Cuomo, said that 15 employees who received retention bonuses from the beleaguered AIG's Financial Products unit, have agreed to return the more than $30 million worth of payments in full.
The AIG hearing is set to kick off at 10 am ET, the same time that FDIC head Sheila Bair will testify at a Senate Banking Committee hearing on bank regulation.
Asian stocks continued to rally on Tuesday, with Tokyo's Nikkei adding 3.3 percent and the Hang Seng of Hong Kong picking up 3.4 percent.
European shares were narrowly mixed. The FTSE of the UK dropped 0.9 percent, the DAX of Germany was up 0.4 percent, and the CAC of France was virtually unchanged.
Deutsche Bank (DB) announced that it expects to return to profitability in 2009 and does not see any requirement for raising capital from external source. The company expects real Gross Domestic Product in Germany to shrink by 3.5%. The German economy may see a slight recovery in 2010, with GDP growth of around 1%.
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