NEW YORK (Reuters) - Stock futures rose on Tuesday as reassuring comments from Citigroup (C.N) about the bank's performance fueled a run-up in financials and investors became hopeful about Washington's efforts to revive the economy.
According to Chief Executive Vikram Pandit's memo obtained by Reuters, Citigroup was profitable in the first two months of 2009 and is confident about its capital strength after tough internal stress tests.
Shares of Citigroup, which recently had the government take a large common equity stake as part of a rescue plan, jumped 18 percent to $1.24 before the bell, while shares of Bank of America (BAC.N) gained 10.1 percent to $4.13.
"We are looking at a nice open, if things stay the way they are," said Peter Cardillo, chief market economist at Avalon Partners in New York. "There's a little bit of a break in the negative rhetoric that we've been having out of Washington."
The market was interpreting the Citi news "as a positive," added Cardillo. The Financial Select Sector SPDR XLF.P shot up nearly 6 percent. more...
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