Stocks may get Citi lift
Futures turn higher after bank reports less of a loss than analysts expected, countering concerns about Merrill, Google and Microsoft.
NEW YORK (CNNMoney.com) -- U.S. stock futures turned higher Friday after Citigroup's quarterly loss turned out to be not quite as bad as Wall Street expected.
On the negative side, investors digested an array of tough quarterly results from Merrill Lynch, Google and Microsoft, and sent mortgage backers Freddie Mac and Fannie Mae lower on a report that Freddie may sell some stock.
At 8:05 a.m. ET, Nasdaq and S&P futures were higher, suggesting Wall Street gains once the market opens.
Before the market opened Friday, Dow component Citigroup (C, Fortune 500) posted a loss of $2.5 billion on writedowns and soaring credit costs. Wall Street had been expecting a wider loss of $2.8 billion.
Mortgages Freddie Mac (FRE, Fortune 500) fell 5% and Fannie Mae (FNM, Fortune 500) slipped 1% in pre-market trading following a report from The Wall Street Journal that Freddie is considering a plan to raise new capital by selling up to $10 billion in new shares.
Such a plan could allow Freddie to avoid a government bailout.
Together, Fannie and Freddie own or back about $5 trillion worth of mortgage debt, or half the U.S. market. The stock for both these companies has plunged more than 70% year-to-date in the wake of the collapsing housing market.
Techs A number of tech titans posted results late Thursday that fell short of analysts' estimates.
Energy Oil prices rebounded after sliding for the past three sessions. In electronic trading, crude futures climbed above $130 a barrel.