US stocks point higher after Europe rebounds

[June 15, 2010]  NEW YORK (AP) -- U.S. stocks looked to open higher Tuesday after European markets rebounded from an early slide and the euro strengthened.

The initial drop overseas came a day after credit rating agency Moody's cut its rating on Greece's debt to "junk" status.

Traders in the U.S. initially had little reaction to the report Monday afternoon but a broad gain in stocks faded by the close. Major stock indexes ended mixed.

The euro rose against the dollar, a sign of confidence that European Union countries will be able to cut debt without spoiling a recovery. The weaker dollar, in turn, helped prop up the price of oil. A drop in the dollar boosts demand by making oil and other commodities less expensive to foreign buyers. Gold slipped.

Crude oil rose 86 cents to $75.98 per barrel in electronic trading on the New York Mercantile Exchange.

Economic and corporate news could help direct trading. The government is expected to release figures on import prices for May. The National Association of Home Builders' housing market index is due during afternoon trading. The index tracks industry confidence.

Electronics chain Best Buy Co. is expected to report fiscal first-quarter numbers.

Dow Jones industrial average futures rose 60, or 0.6 percent, to 10,201. Standard & Poor's 500 index futures rose 7.30, or 0.7 percent, to 1,093.50, while Nasdaq 100 index futures rose 14.50, or 0.8 percent, to 1,861.00.

Bond prices fell, pushing interest rates higher. The yield on the benchmark 10-year Treasury note rose to 3.29 percent from 3.26 percent late Monday.

In afternoon trading, Britain's FTSE 100 climbed 0.4 percent, Germany's DAX index rose 0.5 percent, and France's CAC-40 rose 0.5 percent. Earlier, Japan's Nikkei stock average finished up 0.1 percent.

[Associated Press; By TIM PARADIS]

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