Three for three

Investors will be watching reports on economic growth and oil inventories to see if stocks can extend a two-day rally.

August 30 2006: 6:49 AM EDT


NEW YORK (CNNMoney.com) -- Investors looking for direction will get the latest reading on the strength of the economy Wednesday, ahead of Friday's widely awaited August employment report.

Stock futures edged higher in early trading, although a comparison to fair value suggested a relatively flat start for the market.

Before the open, the government will issue its revision of second-quarter gross domestic product, the broadest measure of the nation's economic activity.

Economists surveyed by Briefing.com forecast the Commerce Department reading will show the economy grew at a 3 percent annual rate, up from the original estimate of 2.5 percent a month ago.

Oil prices rose back above $70 a barrel in early trading ahead of the government report on U.S. fuel supplies, due about an hour after the stock market opens.

The sell-off Tuesday that took oil below $70 to its lowest in 10 weeks, along with the minutes of the latest Federal Reserve meeting, helped lift stocks in the final two hours of trading.

U.S. light crude rose 50 cents to $70.21 a barrel in electronic trading early Wednesday, while Brent crude in London gained 60 cents cents to $70.46.

Bond prices were little changed, leaving the yield on the 10-year Treasury near 4.78 percent. The dollar edged lower against the euro but gained slightly versus the yen.

In corporate news, wholesale club operator Costco (Charts) lowered its fourth-quarter and full-year earnings outlook, citing pressure on profit margins.

Apple Computer (Charts) said after the close Tuesday it's added Google (Charts) CEO Eric Schmidt to its board of directors. Shares of Apple gained 0.5 percent in after-hours trading, while Google shares slipped 0.3 percent.

And AT&T (Charts) announced late Tuesday that personal data, including credit card information, of thousands of its customers was stolen by hackers over the weekend. Shares of the Dow component edged lower in after-hours trading.