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Stock futures are indicating a higher start for U.S. stock markets this morning as investors seem to be in a festive mood ahead of the July 4 holiday. Markets will close at 1 p.m. EDT today and will be closed tomorrow, July 4. Trading, which is usually lighter during the July 4 week, is expected to be even thinner today.

Yesterday was the first day of the second half of the year and the third quarter and stocks rallied. Strong manufacturing sentiment and declining Treasury yields helped fuel stocks. The yield on the benchmark 10-year note fell below 5% for the first time since June.

Today, a couple economic indicators are scheduled to release during the shortened session:

• At 10:00 a.m., May Factory orders are due and is expected to have declined 1.2% in May after a 0.3% increase in April.
• Also at 10:00, another housing indicator is due for release as the National Association of Realtors will report May pending home sales. The index is expected to show a small increase of 0.3% after a decline of 3.2% in April.

Overseas, Asian stocks finished higher with several indices, like Hong Kong's Hang Seng setting new records. European stocks are gaining following improved estimates by brokerages and takeover speculations.

Oil prices fell back below $71 a barrel today after closing above that level yesterday for the first time since August.

There seems to be more problems with products originating in China, this time Chinese inspectors found excessive amounts of additives and preservatives in dozens of children's snacks. Inspectors have also seized hundreds of bottles of fake human blood protein from hospitals.

Corporate news:

Kraft Foods Inc. (NYSE: KFT) announced today that it has offered €5.3 billion ($7.2 billion) in cash to acquire the biscuit division of French food company Groupe Danone SA (NYSE: DA). Danone's board will consider the offer.

SAP AG (NYSE: SAP) responded to Oracle Corp.'s (NASDAQ: ORCL) lawsuit where it alleged SAP downloaded corporate secrets and admitted that one of its units made "some inappropriate downloads."

June auto sales figures due today are expected to show decline in sales for U.S. automakers. Some Japanese carmakers may show increased sales.

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