Stock futures drift lower as dollar strengthens

Stock futures are drifting lower as investors pile on more safe-haven assets like the dollar and Treasurys. The dollar strengthened against other major currencies Tuesday, while bond prices rose. The stronger dollar tugged commodities prices lower. Overseas, Asian markets were lower and European shares were mixed in afternoon trading. A stronger dollar makes commodities more expensive for buyers overseas, and also hurts profits at companies that have large international operations. After the massive rally in stocks and commodities this year, investors are now looking for clues on where the economy is headed in 2010 and how best to position their portfolios for next year. At the same time, many investors have already closed their books for the year, not wanting to lose the gains they've amassed since the stock market's rally began in March. With little economic data to drive trading, the market is likely to seesaw as it did on Monday. Reassurance from Federal Reserve Chairman Ben Bernanke that interest rates will remain low for some time to support an ongoing recovery gave the market a boost. But stocks failed to hold on to the gains and finished the day little changed. Later Tuesday, President Barack Obama will give a speech outlining how he plans to create more jobs. Ahead of the market's open, Dow Jones industrial average futures fell 40, or 0.4 percent, to 10,351. Standard & Poor's 500 index futures fell 4.70, or 0.4 percent, to 1,099, while Nasdaq 100 index futures fell 10.50, or 0.6 percent, to 1,773.50. Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.40 percent from 3.43 percent late Monday. The ICE Futures US dollar index, which tracks the dollar against other major currencies, dipped 0.2 percent. Gold prices fell for a third day in a row, slipping $2 to $1,162. Oil prices gave up 23 cents to $73.70 a barrel in electronic premarket trading on the New York Mercantile Exchange. Overseas, Japan's Nikkei stock average fell 0.3 percent, and Hong Kong's Hang Seng index dropped 1.2 percent. In late morning trading, Britain's FTSE 100 was down 0.2 percent, Germany's DAX index rose 0.1 percent, and France's CAC-40 slipped 0.2 percent.