Futures Point To Higher Open As Oil, Dollar Surge

The dollar continued to march higher against the euro on bets the European Central Bank will ease benchmark interest rates.

U.S. stock index futures indicated a higher open on Tuesday as rising oil prices were seen boosting energy shares and investors awaited factory and services data for a fresh snapshot of the recession-hit economy.

Oil edged above $50 a barrel for the first time since mid-December as fighting in Gaza and a natural gas dispute between Russia and Ukraine raised concerns about supply disruptions.

Shares of Exxon Mobil and Chevron edged higher in trading before the bell.

The dollar continued to march higher against the euro on bets the European Central Bank will ease benchmark interest rates further as inflation recedes.

"Oil and the dollar both strengthening could be positive factors for the market today," said Peter Cardillo, chief market economist at Avalon Partners in New York. He added that the economic data will likely show more weakness, but that anemic datapoints are priced into the U.S. equity market.

The chemical sector returned to the spotlight as shares of Dow Chemical Co rose 3 percent in premarket trade after the chemical producer said it would pursue legal and other options to fulfill rights under its cancelled agreement for a joint venture with Kuwait. The deal had been a key part of the company's growth strategy.

Retailers will also be in focus ahead of closely-monitored same store sales figures later in the week after the latest report on U.S. chain stores provided a small sign of relief. After a dismal holiday shopping season, the data showed sales rose 1.4 percent last week over the prior period and fell less than the same week a year earlier.

In a fresh setback for the beleaguered global auto industry, however, Toyota Motor Corp said it will halt production at Japanese plants for 11 days in February and March as a sharp slide in U.S. sales has left dealers' lots full.

S&P 500 futures rose 6.60 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 rose 63 points while Nasdaq 100 futures gained 14.50 points.

European shares gained for a sixth straight day on Tuesday, boosted by plans for fresh government stimulus packages as autos bounced from Monday's declines and energy shares rose as flows of Russian gas dropped.

Analysts expect more dismal U.S. economic news on Tuesday, with fresh snapshots on weekly store sales, factory orders, service sector activity and pending home sales.

In other U.S. company news, Microsoft Corp sold 28 million units worldwide of its Xbox 360 video game console through the end of 2008, expanding the Xbox's lead over rival Sony Corp's PlayStation 3 console in worldwide unit sales, the company said on Monday.

Microsoft shares rose 1.2 percent to $20.76 in premarket trade.

The Federal Open Market Committee, the policy-setting panel of the Federal Reserve, releases minutes at 2 p.m. (1900 GMT) from its Dec. 16 meeting, when the Fed -- the U.S. central bank -- cut its benchmark rate to a range of zero to 0.25 percent. The market expects details on quantitative easing measures.