Hartcourt Companies (fka HRCT)

[EZ2]

Stocks Poised to Rise Ahead of Holiday

Tuesday July 3, 6:51 AM EDT


NEW YORK (AP) — Stock futures gained Tuesday ahead of a shortened holiday schedule for U.S. markets, with investors betting a home sales report will show some recovery for the beleaguered sector.

Wall Street looked to extend gains on Monday, the first day of trading for the third quarter. Stocks surged amid a decline in Treasury yields, and a report that showed robust manufacturing in June.

Trading was expected to be subdued during Tuesday's session, as stock markets are set to close early, at 1 p.m. EDT, ahead of the July 4th holiday. With little corporate news expected, attention is expected to focus on economic reports on May factory orders and pending home sales.

The National Association of Realtors' report on pending home sales is to be released at 10 a.m. EDT. The data should suggest whether the real estate market's slowdown is dragging on into the summer.



The index dropped by 3.2 percent in April, compared with the previous month, falling to 101.4, down from an upwardly revised figure of 104.8 in March. Pending sales numbers for both April and March were about 10 percent lower than year-ago levels.

Meanwhile, the Commerce Department is scheduled to release its report compiling total factory orders for both big-ticket and less-expensive items at 10 a.m. EDT. The data is considered a key barometer of the demand for manufactured goods in coming months.

Economists expect the report will show factory orders declined sharply in May due to unusually low demand for aircraft and other heavy machinery. In April, orders grew a modest 0.3 percent, but economists expect May growth to decline by 1.3 percent, according to a survey conducted by Thomson Financial.

In corporate news, Kraft Foods Inc. said it offered $7.2 billion in cash to acquire the biscuit division of French food company Groupe Danone SA. The U.S. food company said it made an offer on Monday to buy such European brands as LU, Petit Dejeuner, Tuc, and Mikado. Danone said its board is considering the bid on an exclusive basis.

Ford Motor Co. said late Monday it may take a third-quarter pretax charge of $1.47 billion linked to an offer for some of its debt. The company will also be in focus, along with General Motors Corp., as automakers report June sales.

Investors are also expected to keep an eye on oil prices, especially as the summer driving season officially starts with the July 4th weekend. A barrel of light sweet crude fell 27 cents to $70.82 in premarket trading on the New York Mercantile Exchange.

Dow futures expiring in September were up 33.00, or 0.09 percent, at 13666.00, while S&P 500 futures rose 4.70, or 0.31 percent, to 1,535.70. Nasdaq 100 index futures rose 6.75, or 0.34 percent, to 1,978.75.

Overseas, Japan's Nikkei stock average rose 0.02 percent. Britain's FTSE 100 rose 0.52 percent, Germany's DAX index added 1.11 percent, and France's CAC-40 rose 0.77.

———

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com