Stock futures little changed ahead of open

[October 07, 2009]  NEW YORK (AP) -- Stock futures were little changed Wednesday after a furious two-day rally, as investors await the kickoff of earnings season.

Overseas markets were mixed.

Investors are taking aim at a third consecutive day of gains after two weeks of declines. With few economic reports due out the rest of the week, quarterly earnings reports will take center stage when aluminum company Alcoa Inc. reports results after the market closes.

Earnings will provide strong insight into just how far any economic rebound has been so far. During the second quarter, companies largely beat modest earnings expectations by cutting costs and streamlining operations. That helped fuel the market's rally throughout the summer.

Now, though, investors will be looking for actual growth in revenue and sales as the driver of earnings. That would indicate companies are starting to get their footing again and consumers are back buying goods and services.

A report from the Federal Reserve, due out at 3 p.m. EDT, is expected to show consumers likely cut back on their borrowing for the seventh consecutive month in August. Economists polled by Thomson Reuters, on average, forecast consumer borrowing fell $10 billion at an annual rate in August.

Ahead of the opening bell, Dow Jones industrial average futures rose 4, or less than 0.1 percent, to 9,658. Standard & Poor's 500 index futures rose 0.10, or less than 0.1 percent, to 1,048.70, while Nasdaq 100 index futures rose 1.00, or 0.1 percent, to 1,701.75.

Stocks have surged in the past two days, with the Dow gaining 244 points, its best back-to-back gains since July. All 30 stocks that make up the Dow rose for the fifth time this year. The resurgence comes after back-to-back weekly declines, also the first of its kind since July.

Tuesday's gains came as investors again rallied around signs of a global economic recovery. Australia's central bank raised interest rates, an indication the country believes the worst part of the downturn is over.

Energy and material stocks also got a boost as commodities prices rose. Gold continued its surge into Wednesday, hitting a new record of $1,049.70 an ounce.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.25 percent from 3.26 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.08 percent from 0.06 percent.

The dollar mostly rose against other major currencies after sagging Tuesday following the interest-rate increase in Australia.

Overseas, Japan's Nikkei stock average rose 1.1 percent. In afternoon trading, Britain's FTSE 100 fell 0.4 percent, Germany's DAX index declined 0.3 percent, and France's CAC-40 dropped 0.2 percent.

[Associated Press; By STEPHEN BERNARD]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.