Futuros EUA em alta: Looking for a rally extension

[notiCIas]

Looking for a rally extension

U.S. stocks poised to follow overseas markets despite higher oil prices; retail earnings could help as Home Depot tops forecasts.

February 21, 2006: 6:17 AM EST


NEW YORK (CNNMoney.com) - U.S. stocks appeared ready to follow overseas markets higher Tuesday, despite the sharp rise in oil prices due to recent attacks by militants on Nigerian oil production.

Futures were up, indicating a higher open for U.S. markets, after most major overseas stock markets were building on the gains they posted Monday.

Major markets in Asia closed higher Tuesday, led by a 3 percent rebound by Tokyo's Nikkei index. While Japan's markets closed lower Monday, most major Asian markets opened the week higher. Major European markets were also up in early trading Tuesday after reaching multi-year highs Monday.

Oil prices were sharply above Friday's levels in early trading, after weekend attacks on pipelines in Nigeria, Africa's largest oil producer. The March light crude futures contract for NYMEX gained $1.25 from Friday's level to $61.13 a barrel in electronic trading; the NYMEX market was closed Monday for Presidents Day. The April contract for Brent crude slipped 17 cents from Monday's level to $61.37.

Home Depot reported a better than forecast gain in earnings early Tuesday, as the No. 1 home improvement retailer earned 60 cents a share in the January quarter, up from 47 cents a year earlier. Analysts surveyed by First Call were forecasting earnings of 56 cents a share.

The other retailer in the Dow, No. 1 retailer Wal-Mart Stores (Research), is also due to report results Tuesday, as was Federated Department Stores (Research), the owner of Macy's and Bloomingdale's. Workers at some key New York area Macy's stores voted to authorize a strike Monday.

Treasury prices were higher, cutting the yield on the benchmark 10-year note at 4.55 percent from 4.56 percent late Friday. The dollar was higher against the euro and the yen.

In economic news, investors will see leading economic indicators at 10 a.m. ET Tuesday. Economists surveyed by Briefing.com forecast that index will be up 0.5 percent for January, compared with a 0.1 percent gain in December.

At 2 p.m. ET, minutes of the Jan. 31 meeting of the Federal Reserve, the last chaired by former Fed Chairman Alan Greenspan, will be released.

In corporate news, Time Warner (Research) and financier Carl Icahn announced late Friday that they had reached agreement for Time Warner to increase its share repurchase program to the $20 billion sought by Icahn from its previously-announced $12.5 billion target. It will also name two new independent directors to its board, as Icahn drops his effort to take control of Time Warner and break it up into four companies. CNNMoney.com is a unit of Time Warner.

Shares of Time Warner gained 1.6 percent in after-hours trading Friday following the announcement.

Electronics retailer RadioShack (Research) announced Monday that president and CEO David Edmondson resigned in the midst of an investigation into credentials listed on his resume.