NEW YORK (AP) - Stocks headed for a higher open while credit markets remained strained Friday ahead of an expected House vote on the government's $700 billion financial rescue plan and after Wells Fargo Co. agreed to buy Wachovia Corp. in a $15.1 billion deal.

Investors also appear relieved that the government's September employment report wasn't worse, although the Labor Department said payrolls shrank by 159,000, more than the 100,000 economists predicted. The nation's unemployment rate remained flat at 6.1 percent, as expected.

Investors are eager for unemployment to remain in check because widespread job losses could damp consumer spending, which accounts for more than two-thirds of the nation's economic activity.

On a busy Friday, investors were awaiting resolution on the government's plan to buy up the bad mortgage-related debt blamed for clogging the world's credit markets. Trading has been volatile throughout the week based on investors' reading of whether the plan would win approval; on Monday, the House's rejection took Wall Street and Capitol Hill by surprise.

The Senate subsequently passed a sweetened version of the plan that added tax breaks and raised the limit on federal deposit insurance from $100,000 to $250,000. The revote is expected to occur again during market hours, which could make for somewhat restrained trading until it is complete.

The Wells Fargo-Wachovia deal cheered investors because, unlike several recent banking deals, it hasn't been put together at the behest of regulators or using government money. The agreement upends a plan announced Monday by Citigroup Inc. to acquire Wachovia's banking operations for $2.16 billion, a deal orchestrated by regulators.

The credit markets indicated increased demand for safety early Friday. The yield on the 3-month Treasury bill, the safest type of investment, fell to 0.59 percent from 0.70 percent late Thursday. Yields have remained low in recent weeks as investors have worried about the health of the credit markets. Demand is high because investors are eager to safeguard their money.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.62 percent from 3.64 percent late Thursday.

Dow futures rose 56, or 0.53 percent, to 10,615. Standard & Poor's 500 index futures rose 11.10, or 0.99 percent, to 1,135.50, and Nasdaq 100 index futures rose 13.00, or 0.86 percent, to 1,523.50.

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

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