June 26, 2012-Stocks Edge Higher With a Watchful Eye

U.S. stocks seem to be on track for a rebound on Tuesday, as reflected by the U.S. index futures, which point to a higher opening. The positivism is despite more negative tidings on the eurozone debt crisis front. Moody's downgraded a slew of Spanish banks, triggering anxiety concerning the ill health of the financial system there. Cyprus became the fifth nation after Greece, Ireland, Portugal and Spain to request for a bailout. Treasury bill auction in Spain saw the beleaguered nation raising 3.077 billion euros, above its 2-3 billion euro target, although yields surged and demand waned notably. Italy also saw its borrowing costs climb to the highest level since December at a short-term debt auction, reflecting doubts among investors about the outcome of the upcoming European summit. Meanwhile, a consumer confidence data from Germany showed an unexpected improvement in consumer morale in Europe's largest economy. This comes as a welcome relief after German economic sentiment and business confidence data for June disappointed to the downside. The focus now shifts to the North American session, which will see the release of U.S. consumer confidence data and the results of a house price survey. In pre-market, the Dow futures are up 33 points and the S&P 500 futures are adding 4 points, while the Nasdaq 100 futures are moving up 10.25 points. On the economic front, the Conference Board is scheduled to release its consumer confidence report for June at 10 am ET. The report is expected to show that the consumer confidence index declined to 63.5 in June from 64.9 in May.