Stock futures point to slight gains ahead of open

[March 23, 2010]  NEW YORK (AP) -- Stock futures are rising modestly Tuesday as the market appears set to continue its slow, steady climb higher -- a trend that has become the norm in recent weeks.

Overseas markets mostly rose.

Stocks have been climbing steadily higher in recent weeks following a stream of economic reports that mostly show the economy is improving, albeit slowly. A report on sales of previously owned homes due out at 10 a.m. EDT will be the latest report investors turn to for clues about the battered housing market. Housing reports have been among the few exceptions to the trend of data showing consistent economic improvement.

The housing market has been slow to recover after its collapse helped push the nation into recession. Reports on sales, home prices and foreclosure rates have been uneven in recent months.

The National Association of Realtors is expected to say sales of existing homes fell 1 percent in February to a seasonally adjusted annual rate of 5 million units, according to economists polled by Thomson Reuters.

Bad weather across the country and still tight lending and high unemployment were likely the reason sales dipped to their lowest level since last summer. The sector's weak performance doesn't appear to be deterring investors in premarket dealings Tuesday, though.

Ahead of the opening bell, Dow Jones industrial average futures rose 15, or 0.1 percent, to 10,742. Standard & Poor's 500 index futures rose 1.70, or 0.2 percent, to 1,163.70, while Nasdaq 100 index futures rose 3.00, or 0.2 percent, to 1,951.50.

The Dow has risen in 14 of the past 17 trading sessions and is at its highest level since October 2008.

The recent gains have not come in big chunks like they did last year when triple-digit advances were frequent as the market rose from a 12-year bottom. Instead gains have come in smaller pieces. The Dow rose 44 points Monday.

Stocks rallied Monday after House lawmakers approved a health care overhaul bill that will require about 32 million Americans to get health insurance. Drug and hospital companies got a big boost after the House bill passed because it removed uncertainty that had dogged the sector for months.

The Dow rose 0.4 percent, while the S&P 500 jumped 0.5 percent.

Meanwhile, bond prices inched higher Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.66 percent compared with late Monday.

The dollar rose against other major currencies. Gold rose, while oil dipped.

Overseas, Britain's FTSE 100 rose 0.8 percent, Germany's DAX index gained 0.6 percent, and France's CAC-40 rose 0.7 percent. Japan's Nikkei stock average fell 0.5 percent a day after being closed for a holiday.

[Associated Press; By STEPHEN BERNARD]

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