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 The housing market has been a key indicator used by the central bank to gauge the likelihood of a recession. Investors sent shares mostly higher on Monday on hopes the Fed will continue its campaign of interest rate cuts to prevent the U.S. economy from slipping into a recession.
The National Association of Realtors' index that tracks pending U.S. home sales is forecast to inch downward Tuesday, another indication that the housing market's struggles aren't over yet. The index is released at 10 a.m. EST.
Wall Street will also be examining fourth-quarter results from KB Home, one of the nation's biggest builders of single-family homes. Other companies slated to report earnings on Tuesday include Apollo Group Inc., Constellation Brands Inc., and Supervalu Inc.
Dow futures rose 32 points, or 0.34 percent, to 12,910.00. Broader indexes also indicated a higher open, with Standard & Poor's 500 index futures up 6.50, or 0.46 percent, at 1,428.00; and Nasdaq composite futures up 8.50, or 0.43 percent, at 1,983.75.
There also could be some pressure on stocks as oil prices rose again after slipping in the previous session to a two-week low on worries about the U.S. economy. Light, sweet crude for February delivery rose 64 cents to $95.73 a barrel in premarket trading on the New York Mercantile Exchange.
Bond prices are expected to weaken during the session after a recent rally. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.87 percent from 3.84 percent late Friday.
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 In corporate news, investors will be monitoring Bear Stearns Cos. to see if the fifth-largest U.S. investment bank will announce the resignation of James Cayne as chief executive. He is expected to retain the chairman title, according to a report in The Wall Street Journal.
Cayne was expected to be replaced by Bear Stearns President Alan Schwartz, a 57-year-old investment banker respected for his dealmaking savvy.
That wasn't the only executive shake-up being examined on Tuesday. Starbucks Corp., the world's largest chain of coffee shops, said late Monday it replaced its chief executive officer with former CEO and Chairman Howard Schultz.
Overseas, Japan's Nikkei stock average closed up 0.19 percent. Britain's FTSE 100 rose 0.60 percent, Germany's DAX index added 0.49 percent, and France's CAC-40 was up 0.60 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By JOE BEL BRUNO]
Copyright 2007 The Associated Press. All rights reserved. This
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