Stock futures inch higher ahead of opening

[March 10, 2010]  NEW YORK (AP) -- Investors are continuing to search for direction Wednesday, after two days of relatively flat trading. Stock futures edged higher.

The Dow Jones industrial average is down less than 2 points for the week.

A market surge that began a year ago appears to have run out of steam recently. Traders are no longer looking for just anecdotal evidence that a recession is easing like they were last year. Now they want to see signs of sustained economic growth.

With little economic data released since last week's better-than-expected jobs report, investors haven't made any big moves. Traders clamoring for fresh data on the economy will get some to review in the coming days, including reports on wholesale inventories, weekly jobless claims, retail sales and consumer sentiment.

Overseas markets were narrowly mixed. The dollar strengthened against other currencies, particularly the British pound. The pound weakened after an unimpressive report on industrial output.

In the U.S., the Commerce Department is expected to report businesses added to inventories in January in response to strong gains in sales. Inventories at the wholesale level likely rose by 0.2 percent in January, according to economists polled by Thomson Reuters. The report is due out at 10 a.m. EST.

Consistent growth in business inventories would be a welcome sign because it means that sales are improving. It's also a positive trend for manufacturers who could increase staff to keep up with additional demand. Growth in consumer spending and jobs creation are considered keys to creating sustained economic growth.

Ahead of the opening bell, Dow Jones industrial average futures rose 10, or 0.1 percent, to 10,574. Standard & Poor's 500 index futures rose 1.20, or 0.1 percent, to 1,141.70, while Nasdaq 100 index futures rose 4.25, or 0.2 percent, to 1,905.50.

Major indexes all rose modestly on the one-year anniversary of the market hitting a 12-year bottom. The Nasdaq composite index reached an 18-month high Tuesday, but is still down by more than half from its all-time high hit 10 years ago Wednesday at the peak of the dot-com bubble.

Financial stocks helped boost the market Tuesday, like they did frequently during the past year. Bank shares rallied on rumors the government might prohibit the trades known as short sales in stocks of companies it owns. The government still has large stakes in bailed-out companies, including Citigroup Inc., American International Group Inc. and mortgage giants Fannie Mae and Freddie Mac.

Meanwhile, bond prices dipped Wednesday ahead of an auction for 10-year Treasury notes. The yield on the benchmark 10-year note, which moves opposite its price, was unchanged at 3.71 percent compared with late Tuesday.

Gold and oil both rose.

Overseas, Japan's Nikkei stock average fell less than 0.1 percent. Britain's FTSE 100 rose 0.1 percent, Germany's DAX index gained 0.2 percent, and France's CAC-40 rose 0.3 percent.

[Associated Press; By STEPHEN BERNARD]

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