* Alcoa reports second consecutive quarterly loss
* TARP may be extended to insurers
* Pulte to buy Centex for $1.3 bln
* Futures: Dow up 17, S&P 500 up 3.30, Nasdaq up 11.25
* For up-to-the-minute market news click []
(Recasts, updates prices)
By Chuck Mikolajczak
NEW YORK, April 8 (Reuters) - U.S. stock index futures
pointed to a higher open on Wednesday after news of government
aid for life insurers and a merger among homebuilders spurred
optimism and offset a quarterly loss from Alcoa <AA.N>.
Insurers surged in premarket trade on news the U.S Treasury
Department plans to extend the Trouble Asset Relief Program to
certain life insurers, the Wall Street Journal reported, citing
people familiar with the matter. []
Shares of Hartford Financial <HIG.N> and Lincoln National
<LNC.N> rose more than 23 percent.
Helping to further offset earnings news, Pulte Homes
<PHM.N> said it would buy Texas-based builder Centex <CTX.N>
for $1.3 billion in stock against the backdrop of a troubled
industry.[]
"It is a positive that especially in a struggling industry
like housing, prices have fallen to level where they see
value," said Marc Pado, U.S. market strategist, Cantor
Fitzgerald & Co. in San Francisco.
"Its good for the market and is something we expect to see
across the board in many industries."
S&P 500 futures <SPc1> rose 3.30 points and were below
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> rose 17
points, and Nasdaq 100 <NDc1> futures rose 11.25 points.
Alcoa kicked off earnings season with a first-quarter net
loss that was worse than Wall Street estimated as metal prices
and the auto industry slumped. For more, see []
Shares edged higher to $8.01 in premarket trade after initially
falling 3.7 percent.
Shares of Centex jumped more than 30 percent to $10 while
Pulte shed 3 percent to $10.45.
Still, weak earnings announcements from around the globe
continued as Intel <INTC.O>, the world's largest chipmaker, is
unsure of when demand for semiconductors will revive, said
Chairman Craig Barrett. []
Shares of the chipmaker were flat after slipping 0.6
percent to $15.36.
Sharp Corp <6753.T>, the world's No. 3 LCD TV maker,
doubled its loss estimates for the year just ended on a slump
in sales of its Tvs and panels, but unveiled plans for a
cost-efficient new factory in an effort to cut costs.
[]
German carmaker Daimler <DAIGn.DE> forecast a significant
drop in revenue in all of its automotive business this year as
it pushed back its of when the beleaguered industry might
recover. []
U.S. securities regulators meet on Wednesday to consider
restrictions on short selling, a type of investing blamed by
some lawmakers and executives for exacerbating the financial
crisis and driving down share prices. []
U.S. stocks slid on Tuesday, hammered by fears that
companies will show they struggled in the first quarter as the
recession dragged on as the earnings season kicked off with
Alcoa.
With declines in the past two trading sessions, the S&P 500
has now trimmed its rise from the March 9 low to 20.6 percent.
(Additional reporting by Edward Krudy)
(Reporting by Chuck Mikolajczak; Editing by Theodore
d'Afflisio)
