Wall Street poised for modestly higher opening

Wall Street pointed to a modestly higher open Wednesday, a day after stocks were pummeled by growing concerns about the weakening global economy.

Investors waited for President Barack Obama to announce a plan to help stabilize the housing market and reduce foreclosures. Sharp drops in housing prices and sales, coupled with rising foreclosures since the middle of 2007, have been a primary cause of the recession. Obama's plan comes a day after he signed a $787 billion economic stimulus plan he hopes will spur the economy and create or save more than 3 million jobs.

The administration's housing plan is to be announced just hours after the Commerce Department's expected release of data showing home construction and building permit applications fell for the seventh straight month in January, hitting a record low.

Economists expect that construction of new homes and apartments fell to an annual rate of 530,000 units from 550,000 units in December, according to analysts polled by Thomson Reuters.

The data is set to be released at 8:30 a.m. EST.

Ahead of Wednesday's opening, Dow Jones industrial average futures rose 37, or 0.49 percent, to 7,544. Standard & Poor's 500 index futures rose 4.7, or 0.60 percent, to 790.30, while Nasdaq 100 index futures gained 5.75, or 0.49 percent, to 1,188.25.

Wall Street is trying to rebound after a terrible Tuesday in which the Dow closed just above its November low as doubts about the recently signed stimulus bill and plans to revive the banking sector continued to weigh on investors.

Investors remain uncertain about how effective a plan announced last week by Treasury Secretary Timothy Geithner would actually help the banking sector.

Tuesday's trading followed sharp declines worldwide as investors come to the realization that a global recovery will be prolonged and government intervention is unlikely to help spur quick improvement. Over the weekend, a meeting of Group of Seven finance ministers failed to produce any specific steps to revive the global financial system.

Continued concerns about banks, along with struggling U.S. automakers and cash-strapped consumers sent the Dow tumbling 297.81 points, or 3.79 percent, to 7,552.60 -- just 31-hundredths of a point above its post-meltdown Nov. 20 close of 7,552.29, which was its lowest close since March 12, 2003. The Standard & Poor's 500 index fell 37.67, or 4.56 percent, to 789.17.

Investors will also get a look Wednesday at the nation's January industrial output, which is expected to have fallen 1.5 percent, according to economists polled by Thomson Reuters. The Federal Reserve's report on production at the country's factories, mines and utilities is due out at 9:15 a.m. EST.

The Fed will also release the minutes of its January meeting Wednesday afternoon.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.64 percent from 2.65 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.32 percent from 0.29 percent late Tuesday.

The dollar was mixed against other major currencies, while gold prices fell slightly.

Oil fell 12 cents to $34.81 per barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 1.5 percent. In afternoon trading, Britain's FTSE 100 declined 0.7 percent, Germany's DAX index fell 0.9 percent, and France's CAC-40 fell 0.4 percent.