Dow set for positive 2010 as Greek debt fears ease

NEW YORK (Reuters) - U.S. stocks were set for a higher open on Tuesday, a day after the S&P 500 moved into positive territory for the year, as Greece appeared to be making progress toward a resolution on aid from the European Union.

The European Commission said debt-troubled Greece must take additional measures to reach its deficit reduction target of 4 percent of gross domestic product in 2010 and said the Greek government was united and determined to do what was necessary to reach that target.

"It looks like they are making efforts with Greece. We don't really know the outcome of everything at this point, but it certainly doesn't look like the EU is abandoning them - they are trying to get something done," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

"We are taking that as a positive move."

Monday's gains on Wall Street pushed both the S&P 500 and Nasdaq into positive territory for 2010, with the Dow now off just 0.2 percent for the year.

S&P 500 futures rose 6.3 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 54 points, and Nasdaq 100 futures added 10.75 points.

Later in the session, U.S. automakers release February sales. Economists in a Reuters survey expect domestic median annualized sales of 3.7 million cars and 4.2 million trucks. In January, the figures were 3.8 million cars and 4.18 million trucks.

Terra Industries Inc jumped 12.7 percent to $46.43 after CF Industries Holdings Inc upped its offer for the fertilizer company to $47.40 per share in cash and stock. CF shares tumbled 7 percent to $100.02.

Chipmaker technology bellwether Qualcomm Inc , rose 3.3 percent to $36.74 in premarket after the company announced a new $3 billion share buyback plan and raised its quarterly dividend by 12 percent.

UBS raised its 2010 estimate for global semiconductor company revenue growth, saying the first quarter appeared to be tracking ahead of seasonal trends with strong personal computer sales that should continue to support demand for DRAM microchips.

AutoZone Inc shares were unchanged at $166 after the auto-parts retailer posted second-quarter results.

But Staples Inc shares lost 5.8 percent to $24.35 after the top office products retailer reported lower-than-expected quarterly profit on weak demand for big-ticket items, and forecast full-year earnings well below analysts' expectations.

(Editing by Padraic Cassidy)

WhatsAppFacebookTwitterLinkedinBeloudBluesky