Stock Futures Advance on Signs of Recovery
NEW YORK ( TheStreet) -- Stock futures were pointing to a higher open Tuesday as durable-goods orders and a home price gauge rose more than expected, and investors bet on more positive news, including a forecast for a rise in new-home sales.
The increase in the futures market follows the emphases by Federal Reserve Bank of Dallas President Richard Fisher and Minneapolis Fed President Narayana Kocherlakota that the central bank will gradually rather the abruptly wind-down of the Fed's economic stimulus program.
The global markets Tuesday were also digesting the People's Bank of China's efforts to allay China liquidity fears with a statement saying it will guide market interest rates to reasonable levels.
Futures for the S&P 500 were gaining 12.25 points, or 12.56 points above fair value, to 1,578.5. Futures for the Dow Jones Industrial Average were rising 95 points, or 104.44 points above fair value, to 14,683. Futures for the Nasdaq were adding 22 points, or 25.95 points above fair value, to 2,866.
The Census Bureau reported that durable-goods orders increased 3.6% in May after rising by an upwardly-revised 3.6% in April. Durable-goods orders excluding the transportation component rose 0.7% after gaining by an upwardly-revised 1.7%. Economists, on average, were expecting a durable-goods orders increase of 3% in May and predicted an unchanged core orders figure.
The S&P/Case-Shiller 20-city home price index showed a stronger than expected gain of 12.1% in April after an increase of 10.9% in March. A rise of 10.6% for April was expected.
The Federal Housing Finance Agency House Price Index also showed a gain, up 0.7% in April after an upwardly-revised increase of 1.5% in March.
Amid the housing market reports, homebuilder Lennar