U.S. stocks look poised to open higher on Monday extending the previous session’s rally, as President-elect Barack Obama’s pledge for massive new infrastructure cheered investors.

Obama’s announcement over the weekend of plans for the largest public-works spending program since the creation of the interstate highway system a half-century ago boosted sentiment.

In other economic news, the U.S. Congress is expected to pass a US$15 billion bailout for General Motors, Ford and Chrysler as soon as Tuesday.

Here at home, the Canadian dollar opened at US80.08¢, up 1.4¢ from Friday, ahead of an expected interest-rate cut of a half percentage point or more by the Bank of Canada on Tuesday.

In Canadian business news, Canada Bread Co. Ltd. said it has suspended the managing director of its British bakery division while it probes allegations of attempted price-fixing levied by a competitor, Mr. Bagel Ltd. The allegations follow the collapse of an attempt by Canada Bread to take over Mr. Bagel.

In U.S. earnings news, 3M cut its 2008 earnings outlook amid slumping volume and projected 2009 profits below analysts’ estimates.

In commodities news, crude-oil prices bounced off recent lows, with the January-dated light-crude contract rising US$2.56 to US$43.37 a barrel in electronic trading.

Gold rose US$18.00 to US$770.20 an ounce.

Overseas, Asian markets rallied on government measures to boost the global economy. Hong Kong’s Hang Seng Index surged 8.7% and Tokyo rose 5.2%.

Chinese officials are meeting this week to discuss possible new steps to expand the US$586 billion of stimulus already planned

European markets also rose sharply, with London’s FTSE recently trading 4.8% higher.

On Friday, rebounding financial shares helped the Toronto Stock Exchange’s main index to a higher close.

The S&P/TSX composite index closed up 59.21 points, or 0.73%, at 8,117.03, with five of its 10 main groups ending higher.

For the week, the key index fell 12.4%.

The junior S&P/TSX Venture composite index fell 13.55 points, or 1.94%, to 684.31.

In New York, the Dow Jones industrial average gained 259.18 points, or 3.09%, to end at 8,635.42. The S&P 500 Index climbed 30.85 points, or 3.65%, to 876.07. The Nasdaq composite index rose 63.75 points, or 4.41%, to 1,509.31.

For the week, the Dow fell 2.2%, the S&P 500 lost 2.3% and the Nasdaq slipped 1.7%.

IE