Stocks ready to advance


Investors start the third quarter with key economic reports on manufacturing, home sales and employment.



NEW YORK (CNNMoney.com) -- U.S. stocks were set to open the third quarter with gains Wednesday as investors awaited reports on employment, manufacturing and home sales.
At 7:15 a.m. ET, the Dow Jones industrial average, S&P 500 and Nasdaq-100 futures were higher.
Futures measure current index values against the perceived future performance.
On Tuesday, stocks fell on a weaker-than-expected consumer confidence report and a slump in oil prices.
Nevertheless, it was the end of a positive quarter for the markets. The S&P 500 (SPX) gained 15%, marking its best quarter since the final three months of 1998.
All financial markets are closed Friday for the Independence Day weekend.
Peter Cardillo, chief market analyst for Avalon Partners, said that U.S. futures were following the lead of market gains in China, which were fueled by positive manufacturing data, as well as advances in Europe.
He said that trading in the United States will be heavily influenced by a swath of economic reports in the morning.
"We're taking our cue off Europe in anticipation of the economic data," said Cardillo.
Economic reports on tap: The June reading on private-sector employment from payroll services firm ADP is scheduled to be released at 8:15 a.m. ET. Employers are expected to have cut 394,000 jobs from their payrolls in June after cutting 532,000 in May.
Pending home sales, due out at 10 a.m. ET from the National Association of Realtors, is forecast to be unchanged in May after rising 6.7% in April.
Also at 10 a.m. ET, the Institute for Supply Management's June manufacturing index is expected to have risen to 44.6 from 42.8 in May, according to forecasts.
0:00 /0:57Mixed economic news from Japan
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May construction spending, released by the Commerce Department at 10 a.m. ET, is expected to have fallen 0.6% after posting a surprise rise of 0.8% in April.
The weekly crude oil inventories report from the Energy Information Administration is scheduled to be released midway through the morning. June auto and truck sales are due throughout the day.
General Motors: Bankruptcy court hearings continue for a second day for the Chapter 11 filing of automaker GM (GMGMQ). Judge Robert Gerber may rule on whether to approve the bankruptcy, which would allow GM to leave behind certain assets and liabilities to form a new company.
General Mills: Food producer General Mills (GIS, Fortune 500) said strong cereal sales help drive quarterly net profit to $1.07 per share, double the profit for the year-ago period.
World markets: Asian markets slipped Wednesday, with Tokyo's Nikkei index down 0.2%. European markets rose more than 1% in midday trading.
Oil and money: The price of oil jumped $1.42 to $71.31 a barrel. The dollar was higher against the yen and British pound, but lower versus the euro.