U.S. stock index futures signaled a lower opening Tuesday as investors worried that the Obama administration’s plans to shore up the financial sector and stimulate the economy may not be enough to ease the worst financial crisis since the 1930s.

A day after President Obama warned that the recession could get much worse, investors held out hope that Treasury Secretary Timothy Geithner would restore confidence in the financial system when he unveils a plan to relieve banks of money-losing assets.

Before the bell, the Financial Select Sector SPDR, an exchange-traded fund which tracks the performance of stocks in the Standard & Poor’s 500 financials group, was up 0.8 percent, while Bank of America shares added 2.6 percent to $7.07.
However, shares of Wells Fargo dipped 0.3 percent to $19.01, while JPMorgan was unchanged.

"There’s skepticism about the administration’s ability to get us out of the quicksand," said Andre Bakhos, president of Princeton Financial Group in New Brunswick, N.J.
"The problems are so deep. There’s a feeling that’s growing, that they are throwing good money after bad."

S&P 500 futures fell 4.20 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 fell 26 points, and Nasdaq 100 futures declined 1.75 points.

In addition to the bank plan, investors will also be watching the Senate, which is expected to approve a stimulus package worth more than $800 billion Tuesday. Geithner is due to present his bank plan at 11 a.m.

The stimulus and the bank rescue plan are a make-or-break for stock investors searching for catalysts to sustain the market’s recovery attempt since stocks hit a bear market low in November. (Reuters)