* Race pits Republican McCain against Democrat Obama
* Australian rate cut raises hopes for more global action
* S&P, Nasdaq and Dow futures rise 2 pct
(Recasts first paragraph, updates prices, adds Emerson
Electric)
By Leah Schnurr
NEW YORK, Nov 4 (Reuters) - Wall Street looked poised for a
higher open on Tuesday as Americans headed to the polls to vote
in the race for the White House, while an interest rate cut
from Australia raised hopes of further aggressive global moves
to ease an economic slowdown.
Global stocks gained after Australia's central bank cut
interest rates by a bigger-than-expected 3/4 point. Central
banks in the euro zone and the Bank of England meet later in
the week and could add to global efforts to lower the cost of
borrowing.
But the election will be in the spotlight, with Democrat
Barack Obama leading Republican John McCain in five of eight
key battleground states, according to a series of Reuters/Zogby
polls released on Tuesday.
"The fact is, the passage of the U.S. election might
actually come as a relief to the market rather than
uncertainty, as once the election is done, the political
spectrum of the U.S. will be quite clear for the next four
years," said Subodh Kumar, chief investment strategist at
Subodh Kumar & Associates in Toronto.
The interest rates banks charge each other for short term
loans also fell again, providing further hope that measures to
shore up the credit markets are taking hold.
The Treasury Department is considering using more of its
$700 billion rescue package to buy stakes in a wide range of
financial companies beyond just banks and insurers after
tentative signs the program is working, according to the Wall
Street Journal.
The paper cited sources familiar with the matter saying the
companies in focus include bond insurers and specialty finance
firms such as General Electric Co's <GE.N> GE Capital unit and
CIT Group Inc <CIT.N>. For details, see []. Shares
of GE rose 2.2 percent to $19.72 in premarket action, while CIT
gained more than 12 percent to $5.20.
S&P 500 futures <SPc1> rose 21.10 points and were above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> climbed
178 points, and Nasdaq 100 <NDc1> futures added 27.50 points.
At least 130 million Americans are expected to cast votes
on a successor to President George W. Bush and set the
country's course for the next four years on the economic
crisis, wars in Iraq and Afghanistan, an overhaul of health
care and other issues.
The first polls begin to close in parts of Indiana and
Kentucky at 6 p.m. EST (2300 GMT) on Tuesday. Voting ends over
the next six hours in the other 48 states.
Monday's drop in oil prices also eased anxiety over
pressures on consumer and corporate spending in the wake of
high energy prices. Crude was up $1.16 at $65.07 on Tuesday
after touching a session low of $62.25 earlier.
In the latest round of quarterly results, food processor
and ethanol producer Archer Daniels Midland Co <ADM.N> posted a
sharply higher profit, sending its shares up more than 11
percent at $23.47 before the opening bell. [].
Industrial conglomerate Emerson Electric Co <EMR.N> rose 5
percent to $34.19 after it reported earnings that beat
expectations. [].
Viacom Inc <VIAb.N>, owner of MTV Networks and Paramount
movie studio, reported a drop in quarterly profit after the
closing bell on Monday, highlighting the effect an intensifying
advertising slump is having on media companies.
Stocks ended little changed on Monday as investors picked
up bargains on signs of further thawing in credit markets, but
were unwilling to place big bets ahead of the election.
