Stock futures point toward higher opening

[November 16, 2009]  NEW YORK (AP) -- Stock futures are pointing to a higher opening Monday as investors prepare for a large batch of economic data throughout the week, starting with a report on retail sales.

Overseas markets are higher as a weakening U.S. dollar and stronger gold prices are again boosting commodities and shares of resource companies.

Traders are awaiting a reading that is expected to show retail sales grew 0.8 percent in October, according to economists polled by Thomson Reuters, after a 1.5 percent drop in September. Sales likely moved higher because of a boost in auto sales.

Excluding autos, sales likely increased 0.4 percent last month after a 0.5 percent gain in September.

The Commerce Department report is due out at 8:30 a.m. EST.

Consumer spending accounts for about 70 percent of all economic activity. Analysts widely agree a recovery at the consumer level is needed for a strong recovery, especially as government stimulus programs expire and unemployment remains high.

Ahead of the opening bell, Dow Jones industrial average futures rose 55, or 0.5 percent, to 10,297. Standard & Poor's 500 index futures rose 7.40, or 0.7 percent, to 1,098.80, while Nasdaq 100 index futures rose 9.75, or 0.6 percent, to 1,798.00.

Investors will get plenty more insight into consumers as key retailers such as Home Depot Inc., Target Corp. and TJX Cos., the parent of TJ Maxx all report earnings Tuesday.

Corporate outlooks from the companies will be just as critical as actual quarterly results because they are entering the key holiday shopping season. Disappointing sales through the end of the year could put a halt to the market's ongoing climb.

Other economic readings on inflation, housing starts and industrial production are due out later in the week and could provide further evidence of the speed of a recovery. The Labor Department also reports its weekly unemployment claims data on Thursday.

Stocks are looking to build on last week's strength when major indexes rose more than 2 percent. On Friday, the market was buoyed by encouraging earnings reports and outlooks from major retailers Abercrombie & Fitch Co. and J.C. Penney Co. as well as The Walt Disney Co.

Meanwhile, bond prices were mixed Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.40 percent from 3.42 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.07 percent from 0.05 percent.

The dollar mostly fell against other major currencies, while gold prices continued to climb higher hitting another record. Gold rose $11.80 to $1,128.90 an ounce after hitting a new record of $1,133.50 earlier in the day.

Overseas, Japan's Nikkei stock average rose 0.2 percent. In afternoon trading, Britain's FTSE 100 rose 1.5 percent, Germany's DAX index gained 1 percent, and France's CAC-40 rose 0.9 percent.

[Associated Press; By STEPHEN BERNARD]

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