US STOCKS-Higher open seen on auto aid plan

                                
 * White House and Democrats tentatively agree to auto aid
                                
 * Eastman Kodak, Electronic Arts warn on outlook
                                
 * Energy shares could get lift from higher oil prices
                                
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[STXNEWS/US]
                                
 (Recasts first paragraph, updates prices)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Dec 10 (Reuters) -  U.S stocks headed for a
higher open on Wednesday as news the White House and
congressional Democrats reached an agreement in principle to
aid U.S. automakers. including General Motors <GM.N>, calmed
investors' worries.
                                
 But signs of further deterioration in the world economy and
the profit outlook, including big job losses at an global
mining company, fueled caution a day after stocks sell-off
ended two straight days' of gains.
                                
 Without government help. investors fear that a possible
failure or bankruptcy in the auto sector could send shock waves
 through the economy and worsen unemployment.
                                
 Backers of the $15 billion proposal for bailing out U.S.
automakers could come to a vote in the House as early as
Wednesday, officials said. For details, see [nN09293581]
                                
 "Investors have been concerned about the continued
acceleration of the market free-falling with significant bad
news events," said Rick Meckler, president of investment firm
LibertyView Capital Management in New York.
                                
 But news of the auto agreement should spur "more of a
relief rally than the feeling that this is something good for
the markets itself."
                                
 S&P 500 futures <SPc1> were 10.90 points higher 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 84 points, and Nasdaq 100 <NDc1>  futures gained 10
points.
                                
 Shares of GM were up 3.8 percent to $4.88 in premarket
trade and Ford gained 3.7 percent to $3.35.
                                
 Also likely to lend support to the market was a rebound in
oil prices, which could boost energy shares. U.S front-month
crude <CLc1> was up 4 percent to $43.96 barrel.
                                
 Earnings news and outlooks continued to cast a pall. Shares
of Eastman Kodak <EK.N>  tumbled nearly 16 percent to $6 before
the bell after the photography company warned 2008 revenue and
profit will fall short of expectations. [ID:nN10309478]
                                
 Video game publisher Electronic Arts <ERTS.O> shares fell
10 percent to $17.40 in premarket trade a day after the company
cut its outlook. [ID:nN09279691]
                                
 Stocks in Asia rose overnight, sending the Hang Seng index
up nearly 6 percent, as investors bet on stimulus measures from
Beijing. Hopes for a U.S. auto deal also contributed to the
gains, but European shares edged lower.
                                
 Global miner Rio Tinto <RIO.AX><RIO.L><RTP.N> said it
planned to cut 14,000 jobs and reduce capital expenditures by
$4 billion in 2009. Chinese imports and exports unexpectedly
fell in November, which underscored the breadth and the depth
the global slump.
                                
 Year-to-date the S&P 500 is off 39.5 percent but has gained
18 percent since hitting a Nov. 21 low. From its October 2007
record high, the index is off about 43 percent.
 (Editing by Kenneth Barry)