Stocks move higher in early trading

NEW YORK — Stocks are higher in early trading as investors build further momentum amid fresh signs the global economy is recovering.

Overseas markets rallied as Australia’s central bank became the first major central bank to boost interest rates, adding to hopes that a global economic recovery is underway.

With little in the way of economic data Tuesday, investors are extending Monday’s gains. The U.S. market rebounded from two consecutive losing weeks after a report showed the service sector grew for the first time in more than a year.

The Dow Jones industrial average is up 73.45, or 0.8 percent, at 9,673.20. The Standard & Poor’s 500 index is up 8.45, or 0.8 percent, at 1,048.91, while the Nasdaq composite index is up 14.73, or 0.7 percent, at 2,082.88.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stock futures are pointing toward a higher opening Tuesday on Wall Street as investors try to build further momentum amid fresh signs the global economy is recovering.

Overseas markets rallied as Australia’s central bank became the first major central bank to boost interest rates.

The rate increase added to beliefs that world governments are expecting a global economic recovery soon. Australia’s central bank governor said it was time to begin reducing stimulus provided by low interest rates and that the risk of major economic contraction in the country was over.

Dean Curnutt, president of Macro Risk Advisors, however, cautioned that other central banks are unlikely to follow Australia’s lead in the near future because of the depths of the economic hit taken in countries like the U.S. and around Europe.

“Other large, central banks are not in a position to do that yet,” Curnutt said about raising interest rates.

In the U.S., Curnutt said the Federal Reserve is still focused on avoiding deflation and trying to strengthen asset prices, such as home values, to help minimize losses and rebuild wealth.

With little in the way of new economic reports Tuesday, investors are trying to extend Monday’s gains. U.S. stock markets rebounded Monday from two consecutive losing weeks after a report showed the service sector grew for the first time in more than a year and amid upbeat comments about the nation’s largest banks.

Ahead of the opening bell, Dow Jones industrial average futures rose 61, or 0.6 percent, to 9,607. Standard & Poor’s 500 index futures rose 8.40, or 0.8 percent, to 1,044.80, while Nasdaq 100 index futures rose 11.25, or 0.7 percent, to 1,685.25.

On Monday, The Institute for Supply Management said its service index, which tracks more than 80 percent of the country’s economic activity, rose to 50.9 in September from 48.4 in August. It was the first reading above 50, which indicates growth, since August 2008. Economists were expecting a reading of 50.

Investors had been selling off stocks for the past two weeks as economic reports failed to meet expectations, indicating an economic rebound could be slow and uneven. It was the first two-week stretch of declines since July.

“In the short-term, (investors are) trade off economic reports,” Curnutt said. “We hit road bumps the past couple of weeks.”

With fresh signs of growth, traders found reason to head back into the stock market. The Dow jumped 112, or 1.2 percent Monday, while the S&P surged 15, or 1.5 percent.

Meanwhile, bond prices slipped Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.25 percent from 3.23 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.08 percent from 0.07 percent.

The dollar fell against other major currencies, while gold prices rose.

Overseas, Japan’s Nikkei stock average rose 0.2 percent. In afternoon trading, Britain’s FTSE 100 gained 1.6 percent, Germany’s DAX index jumped 1.6 percent, and France’s CAC-40 gained 1.4 percent.