US stocks climbed higher on Tuesday on hopes Congress will approve automakers’ bailout. Bargain buying after Monday’s sharp selloff also boosted sentiment.

At 8:26 am ET, Standard & Poor's 500 Index futures expiring in December advanced 12.30 points to 828.10. Dow Jones Industrial Average futures gained 94 points to 8233. Nasdaq Composite Index futures rose 14.25 points to 1108.75.

The "Big Three" Detroit automakers will return to Washington D.C to make second bid for $25 billion in emergency loan. They will be presenting Congress with plans containing details as to how they intend to use the fund and restructure their ailing companies.

Sears Holdings Corp. (NASDA: SHLD) reported that it swung to loss in third quarter. The parent of Sears and Kmart stores posted a net loss of $146 million, or $1.16 per share, compared with profit of $4 million, or 3 cents per share in the same quarter in 2007. Excluding one time charges and special items, the adjusted loss for the latest quarter was 90 cents a share. Revenue fell 8% to $10.66 billion from $11.62 billion. Analysts on average were looking for a loss of 49 cents for the quarter on revenue of $10.93 billion.

Retailer Staples (NASDAQ: SPLS) announced on Tuesday that its third quarter net earnings fell to $156.7 million, or 22 cents a share from $274.5 million, or 38 cents a share a year ago. Excluding one time charges, the company earned 42 cents a share, slightly higher than the consensus estimates of 41 cents a share. Sales jumped 34% to $6.95 billion. 

Homebuilder Beazer Homes (NYSE: BZH) posted a fourth quarter net loss of $473.9 million, or $12.29 per share, compared with loss of $155.2 million, or $4.03 per share in the corresponding quarter in 2007.  Revenue fell to $712.6 million from $1.09 billion.

Wall Street Journal reported on Monday that Goldman Sachs (NYSE: GS) is likely to post a loss of as much as $2 billion or 5 cents a share for the fourth quarter.

Elsewhere, UK's largest retailer Tesco (VIRT-X: TSCO-GBX) reported that its third quarter sales increased 2%, much higher than the average analyst estimates of 1.6%.

Bank of Japan on Tuesday announced that it will accept a wider range of collateral in order to facilitate corporate financing. According to the new standards, starting December 9, the bank will be accepting corporate bonds rated BBB or higher from commercial banks. Previously, the bank only accepted corporate bonds of rated A. The new standard will be in effect until April 30. The bank said that the principal terms and conditions for the new operation will be decided at the monetary policy meeting to be held on December 18 and 19, and necessary arrangements will be made for the implementation of the operation in January 2009.

Meanwhile, Reserve Bank of Australia lowered its benchmark interest rate by 100 basis points to a six and a half year low of 4.25%, thus extending the biggest round of reductions since 1991.

European stocks edged higher in the afternoon trade. At 13:00 pm London time, the U.K. FTSE climbed 35.54 points or 0.87% to 4,101.03. The German DAX and French CAC rose 1.60% and 0.77% respectively.

Asian stocks were battered on Tuesday. The Nikkei slumped 533.53 points or 6.35% to close at 7863.69. Hong Kong's Hang Seng Index shed 702.99 points or 4.98% to 13,405.85.The benchmark index in Australia, S & P/ASX  200 fell 153 points or 4.16% to close at 3,528.20.

NYMEX Crude oil for January delivery dropped as much as as much as $1.92, or 3.9% to $47.36.

Disclosure: Author does not own any of the stocks discussed here.