Stocks may see merit in Merrill
Futures turn higher as investment bank's attempt to boost finances gets a positive reception.
NEW YORK (CNNMoney.com) -- U.S. stocks looked set for a higher start Tuesday as Merrill Lynch's move to shore up its financial condition appeared to boost the banking sector.
At 8:20 a.m. ET, Nasdaq and S&P futures were trading higher, pointing to a positive open for Wall Street.
Stocks fell sharply Monday, with the Dow Jones industrial average losing more than 2%. Credit concerns hammered market sentiment, and were likely to remain in focus after Merrill Lynch said it would raise new capital and sell a big chunk of its risky assets.
Finance: Merrill Lynch (MER, Fortune 500) said after the market close Monday that it would take a $5.7 billion writedown and sell off $11.1 billion in mortgage securities in the current quarter.
The brokerage also said it plans to raise $8.5 billion through the issuance of new stock.
"That's looked at as a healthy purge," said Art Hogan, chief market analyst at Jefferies & Co.
Shares of Merrill rose 2.6% in premarket trading.
Oil: Oil prices lost some of Monday's gains. Light, sweet crude for September delivery fell before the bell, declining 52 cents to $124.21 a barrel in electronic trading.
Energy: In energy-related earnings, BP (BP) reported a surge in quarterly profit and sales, which were boosted by the soaring cost of oil.
Valero Energy (VLO, Fortune 500) reported a second-quarter earnings drop of more than 65%. The company blamed shrinking margins for refined products such as gasoline and higher costs due to the price of electricity and natural gas needed to operate refineries.
Tech & telecom: Sony (SNE) said its quarterly profit fell by nearly 50%. The consumer electronics maker was hit by a strong yen and price competition in its electronics sector.
Alcatel-Lucent (ALU) said its chairman and chief executive will both step down after the telecoms giant report its sixth straight quarterly loss.
Consumer products: Colgate-Palmolive (CL, Fortune 500) reported an 18% increase in quarterly profit and boosted its outlook for 2009. The consumer products maker said cost reductions and price hikes, along with stronger sales in Asia and Latin America paid off.
Food: Fresh Del Monte Produce (FDP) reported a 34% decline in second-quarter income due to higher costs and flooding at a banana operation in Brazil.
Economy: A report on consumer confidence was due after the market open. The Case-Shiller home prices index was also on tap.
Other markets: Asian markets tumbled after Wall Street's miserable session on Monday. European shares fell in morning trading. 
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