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US STOCKS-Higher open seen, boosted by techs, energy

Published 06/09/2009, 09:15 AM
Updated 06/09/2009, 09:24 AM
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* Texas Instruments forecast boosts tech shares

* Banks gain ahead of govt bailout payback

* Energy shares up as crude advances

* Futures up: S&P 500 by 3.50 pts, Dow 22, Nasdaq 7.50 (Updates to early morning)

By Edward Krudy

NEW YORK, June 9 (Reuters) - U.S. stocks were set to open higher on Tuesday after Texas Instruments raised its quarterly outlook, underpinning other technology stocks, while rising oil prices boosted energy shares.

The U.S. Treasury Department plans to allow 10 banks to pay back Troubled Asset Relief Program (TARP) funds, Bloomberg reported, citing sources familiar with the matter. By paying back the bailout money, banks hope to extricate themselves from stringent government oversight, including restrictions on executive pay.

"The less government involvement in business, the better business does," said Tom Alexander, head of Alexander Trading in Savannah, Georgia. "Markets are very happy to see the government getting out (of banks)."

Before the bell, Goldman Sachs Group Inc rose 0.6 percent to $149.31, while JPMorgan Chase & Co gained 1 percent to $35.75 in anticipation of Tarp payback plans.

Shares of Texas Instruments Inc rose 6.4 percent to $21.05 after it raised second-quarter revenue and earnings targets late Monday.

S&P 500 futures rose 3.50 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 22 point, while Nasdaq 100 futures were up 7.50 points.

Shares in Exxon Mobil Corp added 0.5 percent to $73.52 as front-month crude climbed nearly 2 percent.

Treasury bond prices recovered Tuesday after a selloff the previous day, but investors remained concerned that higher interest rates could pull dollars away from the stock market and slow an economic recovery by increasing borrowing costs for businesses and consumers.

"The interest rate movements have left people a little bit confused from the investment side," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The S&P 500 has rallied 39 percent since hitting a 12-year closing low on March 9, leading analysts to speculate a correction was looming, although recent dips have been short-lived.

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