Stock futures in tight range ahead of opening

[October 26, 2010]  NEW YORK (AP) -- Stock futures traded in a tight range Tuesday as investors balanced some upbeat domestic earnings with disappointment in corporate results overseas. A stronger dollar also tempered excitement in the market.

Strong results from DuPont helped futures erase some early morning losses. The chemical maker's results easily beat forecasts and it raised its outlook for the remainder of the year due to growing sales in emerging markets.

Other earnings reports from companies like Ford Motor Co., Bristol-Myers Squibb Co. and Kimberly-Clark Corp. are due out later in the day.

But in recent days, strong corporate earnings have been somewhat muted by fluctuations in the dollar. A stronger dollar makes stocks, gold and oil more expensive because they are priced in the currency. The dollar rose against Japan's yen and the euro Tuesday. Gold and oil prices both fell slightly.

Major European indexes fell after investors were disappointed with results at banking giant UBS, wind turbine maker Vestas and steel maker ArcelorMittal.

Traders that focus on economic reports will likely turn to a report on consumer confidence Tuesday. The Conference Board's consumer confidence index likely rose slightly this month, but still remains well below levels considered necessary for a healthy economy.

Ahead of the opening bell, Dow Jones industrial average futures fell 4, or less than 0.1 percent, to 11,111. Standard & Poor's 500 index futures fell 0.80, or 0.1 percent, to 1,182.00, while Nasdaq 100 index futures fell 4.50, or 0.2 percent, to 2,104.00.

The Dow has been hovering near its highest trading levels of the year over the past few days, but has been unable to maintain its upward momentum. Twice in the past three days the Dow has briefly traded above its highest closing level of the year, only to pullback before the end of the day.

Gold fell $2.80 to $1,336.10 an ounce. Benchmark crude oil fell 21 cents to $82.31 a barrel in electronic trading on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 fell 0.7 percent and France's CAC-40 fell 0.6 percent. Germany's DAX fell 0.2 percent.

Bond prices fell slightly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.58 percent from 2.56 percent late Monday.

[Associated Press; By STEPHEN BERNARD]

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