Index futures rise ahead of confidence data

NEW YORK (Reuters) - Stock index futures edged higher on Tuesday as traders looked ahead to key economic data in another test for the improving recovery theory that has driven stocks sharply higher this month.

Signs the economy is on firmer footing have driven gains of about 9 percent in September. Fresh indicators for the economy will be the S&P Case/Shiller Home Price Index and the Conference Board's monthly consumer confidence data later in the day.

"The market mover today will be the consumer confidence," said Peter Cardillo, chief market economist at Avalon Partners in New York. "A number there that is not going to show that the mood of the consumer is eroding further I think could probably propel stocks a bit higher today."

S&P 500 futures rose 1.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 33 points, and Nasdaq 100 futures added 6.25 points.

The S&P 500 blew past a strong technical resistance level at 1,130 last week. Resistance is seen at about 1,173. The index closed at 1,142.16 on Monday.

The S&P Case/Shiller Home Price Index for July is due at 9 a.m. EDT and is expected to show a decline of 0.1 percent versus a gain of 0.3 percent in June. The Conference Board's consumer confidence report is expected an hour later and is seen falling to 52.5 from 53.5, according to a Reuters poll.

Cardillo said he expected the September rally to continue through the end of the month, helped by end-of-quarter portfolio adjustments. "I think September will go out like a Lion", he said.

Research In Motion Ltd unveiled a tablet computer on Monday aimed at business customers as it tries to gain a foothold in the fast-growing market dominated by Apple Inc's consumer-friendly iPad.

European shares were slightly lower in early trade after dropping about 1 percent as persistent worries over sovereign debt levels in peripheral euro zone countries weighed on shares. The Nikkei 225 index closed down 1.1 percent as the deadline passed for investors to receive dividends on stocks for the financial first half year.

Standard & Poor's warned Tuesday it may cut Ireland's credit rating again due to the rising cost of recapitalizing nationalized Anglo Irish Bank Corp Plc , pushing Dublin's borrowing costs to fresh peaks.

Pfizer Inc discontinued a late-stage study of its Sutent drug for advanced prostate cancer after it became clear the drug was unlikely to improve overall survival.

U.S. stocks slipped Monday as investors took a break from a four-week rally, but they remained optimistic the advance would resume as a flurry of deals suggested companies were seeing value in the market.

Options investors seemed to be more concerned about current market conditions. Larry McMillan, president of McMillan Analysis Corp, said extreme overbought conditions were seen in the "term structure" of VIX futures.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)