Stock futures climb, point to higher opening after latest round of upbeat earnings

Stocks set to extend gains on upbeat earnings

NEW YORK — Stocks are set to continue their run higher Tuesday as economic and earnings reports lifted investors’ optimism about the global recovery.

Chemical maker DuPont Co. easily beat second-quarter profit and revenue forecasts and raised its outlook for the year. DuPont joined a growing number of companies whose results have convinced investors that the economy might not be slowing as much as investors thought.

News on the housing market was mildly upbeat. The S&P/Case-Shiller 20-city home price index for May rose 1.3 percent from April. The homebuyer’s tax credit that expired April 30 had an impact on the reading, and the report warned that the recent gains in home prices are not likely to last.

Some major European banks, including UBS AG and Deutsche Bank AG, reported strong earnings. The results came a few days after regulators evaluated banks across the continent to see which would be likely to survive another economic downturn. Major European indexes rose following the earnings and another positive report on Germany’s economy.

BP, contending with the aftermath of the Gulf of Mexico oil spill, is replacing its CEO, Tony Hayward, with American Robert Dudley. The British oil company reported a record quarterly loss and set aside $32.2 billion to cover the costs of the spill.

The euro rose above $1.30. It was below $1.20 in early June when investors were more concerned with the health of Europe’s economy.

Stocks fell worldwide in May and June because of worries that mounting government debt across Europe would stall a global recovery. Strong earnings from U.S. and European companies over the past two weeks have helped to ease those concerns.

A report on July consumer confidence due out later Tuesday could temper the upbeat mood in the market. The Conference Board report is expected to show its consumer confidence index dipped again in July, falling to 51.0 from 52.9, according to economists polled by Thomson Reuters. Last month, the index posted its largest drop since February, which helped push stocks sharply lower. If it meets or surpasses the forecast, it might give stocks a further lift.

Consumer confidence has waned in recent months primarily because of ongoing concern about high unemployment. With consumers not as confident as they were just a few months ago, their spending has slowed. Consumer spending accounts for a large portion of the nation’s economy.

Ahead of the opening bell, Dow Jones industrial average futures rose 68, or 0.7 percent, to 10,525. Standard & Poor’s 500 index futures rose 8.30, or 0.8 percent, to 1,117.80, while Nasdaq 100 index futures rose 12.00, or 0.6 percent, to 1,899.50.

The Dow has surged in July, rising 7.7 percent during the month. The sharp gains helped push the index back into the black for the year on Monday. In the past three trading days alone, the Dow has jumped 4 percent because of consistently strong earnings and outlooks.

Stocks got a lift Monday after a report on new home sales rose more than expected last month. The housing market has remained weak, particularly since a tax credit for home buyers expired at the end of April.

Meanwhile, bond prices fell. The yield on the 10-year Treasury note, which moves opposite its price, rose to 3.04 percent from 2.99 percent late Monday. Its yield is often used to set interest rates on mortgages and consumer loans.

DuPont shares rose $1.81, or 4.6 percent, to $40.80 in pre-opening trading. Shares of Deutsche Bank trading in the U.S. rose $3.32, or 5 percent, to $69.50, while UBS shares rose $1.19, or 7.9 percent, to $16.34. BP fell 2 cents to $38.63.

Overseas, Britain’s FTSE 100 rose 1 percent, Germany’s DAX index gained 0.9 percent, and France’s CAC-40 rose 1.5 percent. Japan’s Nikkei stock average fell 0.1 percent.