Stock futures point to higher opening

[December 24, 2009]  NEW YORK (AP) -- Stock futures are pointing to a modestly higher opening Thursday, as new reports on unemployment and durable goods orders are expected to show the economy is continuing its recovery.

Overseas markets rose. Asian markets rallied on expectations China will maintain loose monetary policy.

Investors are expecting the new data ahead of Thursday's abbreviated session to show the economy is rebounding. It comes a day after a disappointing report on sales of new homes in November renewed caution about the speed of the recovery.

Economists predict orders to U.S. factories for big-ticket manufactured goods rebounded in November, rising 0.5 percent, according to Thomson Reuters. Durable goods orders, which are for items expected to last at least three years, fell 0.6 percent in October.

The Commerce Department releases the report at 8:30 a.m. EST.

A separate report is expected to show new claims for unemployment benefits fell by 10,000 to a seasonally adjusted level of 470,000 the previous week. Eventual job growth is considered vital for a strong recovery.

The Labor Department's weekly unemployment report is due out at 8:30 a.m. EST.

Ahead of the opening bell, Dow Jones industrial average futures rose 24, or 0.2 percent, to 10,428. Standard & Poor's 500 index futures increased 3.90, or 0.4 percent, to 1,119.50, while Nasdaq 100 index futures rose 2.75, or 0.2 percent, to 1,855.00.

The market will close early Thursday and be closed Friday for the Christmas holiday. Trading has been light throughout the week heading into the holiday season. Low volume can exaggerate market movements.

Stocks eked out gains on Wednesday as rising commodities prices pushed energy and materials stocks slightly higher. Commodities rose as the dollar fell for the first time in four days. A weaker dollar makes commodities more attractive for foreign investors.

The boost from energy and materials stocks helped offset the disappointing report on sales of new homes. The Commerce Department said sales of new homes in November tumbled 11.3 percent to their lowest level since March. The Dow rose less than 0.1 percent, while the S&P gained 0.2 percent.

Meanwhile, bond prices were little changed Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.74 percent from 3.75 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, was unchanged at 0.05 percent.

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

Overseas, Japan's Nikkei stock average rose 1.5 percent. Britain's FTSE 100 rose 0.2 percent and France's CAC-40 rose 0.2 percent. Germany's market was closed for Christmas.

[Associated Press; By STEPHEN BERNARD]

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