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Futures Rise Ahead of Open, Following Europe

CNBC.com, Reuters
Tuesday, 9 Nov 2010 | 9:26 AM ET

Stock index futures pointed to a higher open for Wall Street on Tuesday, tracking gains in Europe where upbeat company statements lifted shares.

Investors are expected to remain cautious however amid renewed concerns over euro zone sovereign debt and inflation. The dollar fell slightly against a basket of currencies in early trading after rising on Monday.

Global concerns over the Fed's plans to pump more money into the U.S. economy continued to percolate ahead of the G20-summit meeting of world leaders later this week. On Tuesday, China warnedthe Fed's efforts could create asset bubbles elsewhere.

In addition, top Fed officials signaled they were divided on the wisdom of the central bank's $600 billion bond-buying program unveiled last week, with one warning the Fed's bond buying might need to be curbed to head off inflation.

Concerns over euro zone sovereign debt flared up again on Monday and could pressure stocks on Tuesday as well, but upbeat company statements boosted European shares in early trade.

Gold rose to a record for the fourth straight session on continued concerns with European debt. Economic data due on Tuesday includes wholesale trade for September. A consensus forecast calls for inventories to increase by 0.6 percent, according to Briefing.com.

In a positive sign for the U.S. economy, optimism among small U.S. businesses rose for the third straight month, the National Federation of Independent Business said Tuesday. The organization's small business index rose 2.7 points to 91.7 in October, a figure that is still in recessionary territory.

Atlas Energy

shares soared after news

Chevronwould buy the natural gas producer

for $4.3 billion, including debt, giving it a stake in the Marcellus shale fields.

Sara Lee has agreed to sell its North American bakery business to Grupo Bimbo for $959 million. The food product maker also reported weak profit for the third quarter.

Meanwhile, Dean Foods shares sank after reporting third-quarter earnings plunged 51 percent, well below estimates, and gave a disappointing outlook for the fourth quarter.

Solid results from mobile phone operator Vodafone and lender Barclays helped lift Britain's top share index.

Elsewhere in Europe, Carlsbergposted a bigger-than-expected rise in third-quarter operating profit, helped by recovering consumer sentiment and warm weather in Eastern Europe, and nudged up its full-year profit outlook.

Coming Up This Week:

TUESDAY: Wholesale trade, 10-yr note auction, U.S. Supreme Court hears AT&T class action case.
WEDNESDAY: Weekly mortgage apps, Jobless claims, International trade, Import & export prices, Oil inventories, CFTC hearing on Dodd-Frank, 30-yr bond auction, Earnings from GM, Macy’s and Cisco.
THURSDAY: Veterans Day – Bond market closed, stocks and futures markets open, G20 mtg. begins, Earnings from Kohl’s, Disney and Nvidia.
FRIDAY: APEC CEO summit, Consumer sentiment, Earnings from DR Horton and JCPenney.

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