MW: U.S. stock futures lean higher as quarter ends
LONDON (MarketWatch) -- U.S. stock futures were pointing to a higher start Tuesday as a strong quarter came to a close, and as investors looked ahead for signs that a hoped-for economic recovery materializes during the second half of the year.
S&P 500 futures rose 2.9 points to 924.10 and Nasdaq 100 futures added 3.75 points to 1,485.20. Futures on the Dow Jones Industrial Average rose 19 points.
U.S. stocks closed higher on Monday, albeit on low volumes, with the Dow Jones Industrial Average up 90 points, the Nasdaq Composite up 5 points and the S&P 500 up 8 points.
The market gains came as oil prices climbed. Of late, the correlation between the equity market and oil prices is running at a historical high of 80%, according to Deutsche Bank analyst Binky Chadha, who doesn't believe the correlation should continue and is saying investors should underweight energy and material stocks.
Crude-oil futures rose 52 cents to $72.01 a barrel in electronic action on Tuesday. The dollar, which often moves in the opposite direction to oil, slipped 0.3% to 95.79 yen.
As the quarter ends, traders will also be looking for signs of window dressing, the term used for the phenomenon of fund managers buying the quarter's winners in a bid to show clients that they picked the right stocks for their portfolio.
Heading into the final day of the second quarter, the S&P 500 has rallied 16%, according to FactSet data, helped by indications of a stabilizing economy and signs the credit crunch is thawing.
Also as the quarter ends, cash-strapped California is due to issue IOUs to creditors.
Data due for release includes the S&P/Case-Shiller home-price index for April, Chicago PMI for June and consumer confidence for June. Those releases will come out between 9 a.m. and 10 a.m. Eastern time.
Of companies in the spotlight, a Texas jury ordered Abbott Laboratories (ABT 47.24, -0.58, -1.21%) to pay Johnson & Johnson (JNJ 57.00, +0.40, +0.71%) $1.67 billion over alleged patent infringement on an arthritis therapy. Abbott is planning an appeal.
Exco Resources (XCO 11.12, +0.87, +8.49%) may be active after inking a $1.3 billion deal to form a gas-shale venture with Britain's BG Group.
H&R Block (HRB 15.67, +0.25, +1.62%) may gain as the tax preparer's quarterly earnings and annual outlook topped estimates.
Asian stocks were generally stronger, as the Nikkei 225 closed up 1.8% in Japan, while South Korea's Kospi Composite ended 0.1% higher.
The pan-European Dow Jones Stoxx 600 drifted in and out of positive territory, as banks rose and food producers fell.
Yields on 10-year Treasury bonds rose 2 basis points to 3.49%. Yields move in the opposite direction to prices.
