Oil, housing could brighten Wall Street's day
Futures on the rise as crude continues to drop and a compromise measure reaches the House.
NEW YORK (CNNMoney.com) -- U.S. stocks were set to open higher Wednesday amid a backdrop of declining oil prices and the expectation of Congressional relief for the housing crisis.
At 7:45 a.m. ET, Nasdaq and S&P futures were higher, signaling a solid start for the major indexes. ( Premarket data)
Stocks rallied late in the trading day Tuesday, with the Dow closing up 135 points, after oil prices fell more than $3 a barrel.
Oil: Oil prices continued their decline Wednesday, sinking below $127 a barrel in electronic trading as a hurricane headed for the Texas Gulf coast appeared unlikely to cause much disruption to offshore production.
Also contributing to the decline was the expectation that gasoline supplies rose last week as consumers cut back use due to the recent high prices. The government was scheduled to issue its weekly inventory report at 10:35 a.m. ET.
At 7:40 a.m. ET, the September contract for light, sweet crude stood at $126.30. That was $2.12 lower than Tuesday's September settlement and $1.65 lower than the settlement for the August contract, which has ended active trading.
Housing: A bill aimed at easing the recent housing market crisis was expected to reach the House floor Wednesday, with the possibility that President Bush could sign it into law this week.
The compromise measure between Congressional Democrats and the White House would provide aid to homeowners struggling with foreclosure and support for mortgage financers Fannie Mae (FNM, Fortune 500) andFreddie Mac (FRE, Fortune 500). (full story)
Financial: Washington Mutual (WM, Fortune 500), one of the banking companies suffering from the after-effects of the housing crisis, late Tuesday reported a $3.3 billion net loss for the second quarter, far worse than Wall Street expected. (full story)
Japan's largest insurer, Tokyo Marine, said it would purchase insurance company Philadelphia Consolidated Holding (PHLY) for $4.7 billion.
Retail: Warehouse club store operator Costco Wholesale (COST, Fortune 500) said its fiscal fourth-quarter and full-year profits would be "well below" Wall Street estimates due to high fuel costs, and added that it would expand a stock repurchasing program.
Tech: Web portal Yahoo (YHOO, Fortune 500) reported second-quarter results that missed analysts' expectations as it struggled with dwindling market share and softening economic conditions. (full story)
Markets: Asian stocks finished higher Wednesday, with Tokyo's Nikkei index up nearly 1%. European markets were higher at midday. 
