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US shares set to rise on China package; AIG in focus

Published 11/10/2008, 06:35 AM
Updated 11/10/2008, 06:38 AM
WMT
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* U.S. shares are set to rise on Monday, with futures for the Dow Jones, the S&P 500 and the Nasdaq up between 2.2 and 2.7 percent, following gains for Asian and European markets after China announced a $600 billion economic stimulus plan to boost domestic demand.

* American International Group has reported a third-quarter loss of $9.05 per share, compared with a profit of $1.44 a year ago. AIG shares were up 10.8 percent in Frankfurt.

The Federal Reserve also announced it was restructuring its support plan for the troubled insurer. The U.S. treasury is to buy $40 billion in newly-issued AIG preferred shares under the TARP scheme.

* The grim view on consumer spending could worsen this week as investors parse a government report on retail sales and earnings from Wal-Mart Stores Inc, while waiting with bated breath for President-elect Barack Obama's pick for U.S. Treasury secretary.

* Last week, the Dow Jones industrial average fell 4.1 percent, while the S&P 500 dropped 3.9 percent and the Nasdaq sank 4.3 percent.

* There is no major economic data scheduled on Monday.

* Others reporting third-quarter results include Sempra Energy, American Capital Ltd and Frontier Comm..

* Coffee chain Starbucks is expected to report fourth-quarter earnings of 13 cents a share, down from 21 cents a share. Others reporting fourth-quarter numbers include Tyson Foods and Rockwell Automation.

* On Sunday, NRG Energy Inc said it had unanimously determined that the Oct. 19 2008 unsolicited proposal from Exelon Corporation significantly undervalues NRG and is not in the best interests of NRG's shareholders.

* China approved a $586 billion government spending package and announced a shift to "moderately easy" monetary policy despite having already made three interest rate cuts since mid-September. (Reporting by Brian Gorman; Editing by Jon Loades-Carter)

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