Wall Street Set To Open Higher Ahead Of Economic Data

June 30, 2009 8:00 a.m. EST

New York, NY (AHN) - U.S. stock futures index pointed Wall Street towards a higher start on Tuesday as the investors gained confidence following yesterday's commodity-related bull rally. Crude and metal prices as well as banking sector will remain in the spotlight today.

Traders expect to end the last trading session of this year's first half on a positive note ahead of reports on consumer confidence, housing and Chicago PMI data.

The April-June quarter has seen improvements in earnings and economic data that were better than 2008 figures.

"Another quiet morning so far, but traders are wondering if there will be a repeat of yesterday with prices taking off to the upside once the cash market opens," David Morrison, CFD Market Strategist at London-based GFT, said today.

On early Tuesday in New York, S&P futures remained up by 3.80 points or 0.41 percent at 925.00 points, NASDAQ futures gained by 5.25 points or 0.35 percent at 1,486.75 points.

At the same time, the Jones Industrial Average futures increased by 26.00 points or 0.31 percent to 8,484.00 points today.

"Today is the last day of the quarter so there may be some last minute 'window dressing' as fund managers mess around with their portfolios," GFT's Morrison said.

He added, "Oil prices are higher again this morning, and this is currently being viewed as a positive for the market, as it suggests pricing traction and increased economic activity. However, this view of oil could quickly morph into a negative: a speculative bubble and a drag on economic recovery."

Shares of Exxon Mobil Corp. (NYSE: XOM), the world's largest company by market value, gained by 0.3 percent to $70.73 in Frankfurt trading. Chevron Corp. (NYSE: CVX) added 0.6 percent to $67.29 after oil rates rebounded to seventh-month high level.

Light sweet crude futures for August delivery was moving higher by $1.19 at $72.68 a barrel on early Tuesday in electronic trading in New York.

On Monday, the front-month's contract had advanced by as much as $2.33, to end at $71.49 a barrel on the New York Mercantile Exchange in overnight trading after Nigeria militant attack news.

In the financial sector, Goldman Sachs Group Inc (NYSE:GS) advanced by 1.6 percent to $151.73 in Frankfurt on reports that UBS (NYSE:UBS) analysts have placed the stock to "buy" rating in resumed coverage.

Among the drugmakers, shares of Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) will remain active after a Texas jury ordered ABT to pay $1.67 billion over charges related to patent infringement on an arthritis therapy.

The reports said today that Abbott is planning to appeal against the ruling.

In economic reports, data on Consumer Confidence index for June is expected to be released by Conference Board. The market analysts are expecting the index to increase to 55.3 from 54.9.

The S&P/Case-Shiller home-price index is anticipated to drop 18.60 percent from a year ago period in April, following a drop of 18.7 percent in March.

Another report on the Chicago PMI, a regional read on manufacturing, is projected to rise to 39 last month, following May's 34.9.