Stocks rise in early morning trading, following overseas markets higher

Stocks rise early, following gains overseas

NEW YORK — Stocks are rising in early trading following gains in overseas markets, at the start of what is expected to be a quiet week of trading.

Major European markets were sharply higher Monday.

Trading is likely to be light during the week shortened by the Christmas holiday, but that can add to volatility. Traders are closing out books and locking in gains from a nine-month rally. Major indexes are all sharply higher in 2009.

A final report on U.S. economic activity, housing sales data and orders for durable goods due out later this week could influence trading.

The Dow Jones industrial average is up 59.03, or 0.6 percent, at 10,387.92. The Standard & Poor’s 500 index is up 7.34, or 0.7 percent, at 1,109.81, while the Nasdaq composite index is up 14.36, or 0.7 percent, at 2,226.05.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stock futures are pointing to a higher opening Monday, following gains in major markets overseas in what is expected to be a quiet week of trading.

Trading is likely to be light during the Christmas holiday-shortened week, but that can add to volatility. Markets will be closed Friday.

Investors traditionally avoid placing big bets during the last two weeks of the year. Traders are likely to be closing out books and locking in gains from a nine-month rally. Major indexes are all sharply higher in 2009.

Those still trading will get plenty of economic data throughout the week to determine if the ongoing rally has been justified.

The government on Tuesday releases its final report on third-quarter gross domestic product, which measures the total economic output of the country. Economists polled by Thomson Reuters predict third-quarter growth was unchanged at an annual rate of 2.8 percent.

Data on existing and new home sales are also due out later in the week. Both reports are expected to show sales rose about 2 percent in November. A recovery in the housing market is considered vital to foster a recovery because a collapse in sales and prices coupled with mounting mortgage defaults helped throw the nation’s economy into recession.

Orders to U.S. factories for big-ticket manufactured goods likely rebounded in November. Orders for durable goods that are expected to last more than three years likely rose 0.5 percent in November, after a 0.6 percent drop a month earlier. The report is due out Thursday.

Ahead of the opening bell, Dow Jones industrial average futures rose 40, or 0.4 percent, to 10,311. Standard & Poor’s 500 index futures increased 5.60, or 0.5 percent, to 1,103.30, while Nasdaq 100 index futures rose 10.25, or 0.6 percent, to 1,817.25.

In corporate news, mining equipment maker Bucyrus International Inc. said it will acquire Terex Corp.’s mining equipment division for $1.3 billion in cash.

French drug maker Sanofi-Aventis SA said it will buy Chattem Inc., a U.S. maker of consumer health-care products, for about $1.9 billion in cash. The deal values Chattem at $93.50 per share, a 34 percent premium over Friday’s closing price.

Stocks are looking to extend gains into a second day. Major indexes rose Friday following upbeat earnings reports from software company Oracle Corp. and BlackBerry maker Research In Motion Ltd.

Volume was exceptionally high Friday as several types of options contracts expired and S&P made changes to the S&P 500. That index is the basis for many indexed mutual funds, so those funds were forced to alter their holdings to match the reconstituted index.

Meanwhile, bond prices fell Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.60 percent from 3.54 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.05 percent from 0.03 percent.

The dollar was mixed against other major currencies, while gold prices rose.

Overseas, Japan’s Nikkei stock average rose 0.4 percent. Britain’s FTSE 100 rose 1.3 percent, Germany’s DAX index gained 0.8 percent, and France’s CAC-40 rose 1.2 percent.