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US stock futures gain on latest positive data

Tuesday, 2 Oct 2012 | 9:26 AM ET

NEW YORK -- U.S. stock market futures rose Tuesday, with new data on home price gains adding to optimism from improving U.S. manufacturing data.

A measure of U.S. home prices in August showed the largest year-over-year increase in more than six years, at 4.6 percent. CoreLogic, a private real estate data provider, also said prices rose 0.3 percent in August from July, the sixth straight month of price gains.

When viewed with other gauges of the housing market that have turned positive in recent months, including a rising number of home sales and increased builder confidence, the data point to a strengthening housing recovery.

The CoreLogic report comes a day after the manufacturing survey from the Institute for Supply Management also pointed to an improvement. ISM's main index rose above 50, a reading that signals growth. The index had been below 50 from June through August.

Dow Jones industrial average futures added 35 points to 13,472. The broader Standard & Poor's 500 futures gained 6.1 points to 1,443. Nasdaq 100 futures are up 11.2 points to 2,799.5.

Hopes that the U.S. is back in recovery mode has helped stocks around the world start the new month on a relative high, despite concerns about the economic outlook of both Greece and Spain.

In Europe, the FTSE 100 index was up 0.19 percent at 5,831.50 while Germany's DAX rose 0.3 percent to 7,349. The CAC-40 in France added 0.16 percent steady at 3,440.

Spain's Ibex also rode higher, gaining 1.15 to 7873.50, despite continued worry about whether that country will seek a financial bailout, even as concern rose that the Germany government is reluctant to ask its Parliament for a vote to approve such a move.

Investors are monitoring developments in Greece, as the country's government talks with debt inspectors over the latest batch of austerity measures. If the inspectors refuse to sign off on the measures, Greece faces the prospect of not getting its next batch of bailout funds, a development that may lead to its exit from the euro.

Earlier, Asian trading was subdued as markets in Hong Kong, mainland China and India were closed for public holidays.

Japan's Nikkei 225 index shed morning gains to close 0.1 percent lower at 8,786.05 but Australia's S&P/ASX 200 gained 1 percent to 4,433 after the country's central bank cut its benchmark interest rate

U.S. stocks to watch Tuesday include General Motors Co. and Ford Motor Co., as the major automakers report September sales data. The reports are expected to show continued strength for the month. Ford shares added 8 cents to $10.01 in premarket trading.

And JPMorgan Chase & Co. shares added 13 cents to $41.10 in early trading, despite news that New York's attorney general hit the bank late Monday with a lawsuit alleging that investment bank Bear Stearns _ prior to its collapse and subsequent sale to JPMorgan in 2008 _ perpetrated massive fraud in deals involving billions in residential mortgage-backed securities

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GM
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F
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JPM
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CLGX
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