(RTTNews) - After posting losses in the previous session, stocks are indicating a higher open on Tuesday as investors look ahead to some key economic news. A half-hour after the start of trading, the release of a slew of economic data could have a significant impact on the markets. At the same time, some traders may shrug off the data as old news that has already been priced in.

One of the expected reports is coming from the Institute for Supply Management, which will release its December report on activity in the services sector. The index of activity in the sector is expected to decline slightly to 37.0. A reading below 50 indicates a contraction in the sector.

Activity in the sector contracted notably in November, with the service sector index dropping 7 points to a record low reading of 37.3. The employment index declined a steeper 10 points to 31.3, suggesting a rapid deterioration in the labor market.

At the same time, the government will issue its report on November factory orders. After plunging 5.1 percent in October, factory orders are expected to have dropped 2.6 percent in November.

Similarly, weakness is also expected in the pending home sales report that is due to be released by the National Association of Realtors. Pending home sales fell by 0.7 percent in October and are expected to have fallen another 1.0 percent in November.

On the corporate front, phosphate and potash fertilizer manufacturer Mosaic Co. (MOS), reported a steep rise in its second quarter net earnings compared to the year-ago period primarily due to a gain on the sale of its interest in Saskferco.

Meanwhile, citing the deepening global recession, computer peripherals maker Logitech International (LOGI) said it withdrew its fiscal year 2009 sales and operating income growth targets. Additionally, on a cautious note, the company said it expects the economic environment to worsen in the coming months and announced a 15 percent reduction in its salaried workforce.

After showing some uncertainty throughout the trading day, stocks ended Monday’s session off their intraday lows but considerably below the unchanged line. The weakness came as investors shrugged off some positive news and cashed in on last week’s gains.

While stocks showed a notable decline in early trading, selling pressure waned not long after the open and the major averages moved back to the upside. The markets were unable to sustain the recovery attempt, however, and the Dow eventually ended the session down more than 80 points.

Despite recent buoyancy witnessed in the market, the primary downtrend that has been in place since late 2007 has not been violated. However, the Dow Industrials has broken above a secondary down trending line seen since August 2008.

Additionally, the Dow has climbed above its 50-day moving average, although it is trading significantly below its 200-day moving average. Overhead resistances are found around 9,331, 9973 and 10,852, while the index has strong support around 8,409 and 7,766.

Crude oil futures are currently trading up $1.17 at $49.98 a barrel. On Monday, the commodity climbed $2.47 to $48.81 a barrel. Gold futures, which declined $21.70 to $857.80 an ounce in the previous session, are currently down $14.30 at $843.50 an ounce.

On the commodity front, the U.S. dollar is currently trading at 94.348 yen after strengthening 1.7 percent to 93.3995 yen at the close of trading on Monday. The dollar is currently valued at $1.3386 versus the euro.

In overseas trading, the major markets in the Asia-Pacific region ended mostly higher on Tuesday. The Japanese, Australian and South Korean markets ended higher, although the Hong Kong closed in negative territory.

The major European markets have also moved considerably higher over the course of the trading day. While the French CAC 40 Index and the German DAX Index are advancing 1.7 percent and 1.8 percent, respectively, the U.K.’s FTSE 100 Index is gaining 1.6 percent.

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Posted in Categories: Australia, Economy, Eurozone, Japan, Releases, USA.

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