U.S. stock futures are higher Tuesday morning as investors await earnings reports. Futures for the Dow Jones Industrial Average gained 24 points to 11,987, while futures for the S&P 500 index climbed 2 points to 1,295.10. Futures for the Nasdaq 100 index gained 4.75 points to 2,259.25.

U.S. stocks closed higher on Monday, with the Dow Jones Industrial Average gaining 1.50% to 12,037, the S&P 500 index rising 1.5% to 1,298 and the Nasdaq 100 index climbing 1.83% to 2,692.

With earnings season in full swing, the FOMC meeting on interest rates, the GDP estimate, and housing numbers due out, the coming week is shaping up to be a busy one. So here's a peek at what's on the economic calendar.

Monday

Quarterly reports from American Express (AXP) and McDonald's (MCD) will highlight Monday. Amgen (AMGN), CSX (CSX), Halliburton (HAL) and Texas Instruments (TXN) are also expected to report strong earnings results.

This not good news. Market researcher Zillow, which tracks home prices, reported that prices dropped 5.1% in November 2010, the 53rd straight month of declines. Zillow does not include foreclosures in its data, according to CNNMoney.

Zillow forecasts that home prices will continue falling into the second half of this year. According to Zillow, "The bottom will be very long and rocky."

Another research company, CoreLogic, which also tracks the home market, reported that home prices declined in 44 states, up from 18 in June.

Despite talk all year long that the housing market was stabilizing and that it had reached bottom, home values in the U.S. have fallen $1.7 trillion in 2010, real estate website Zillow announced Thursday. Zillow's 2010 estimate is 63% higher than the $1 trillion drop it estimated in 2009, CNNMoney reported.

The first time home-buyer credit ended up to be just a blip in the overall price declines, demonstrating that market forces are more powerful than temporary fixes.

According to the Wall Street Journal, the Conference Board reported that consumer confidence rose in November to 54.1, from 49.9 in October. Those people expecting conditions to get better rose to 16.7% from 15.8%. Those expecting conditions to worsen fell to 12.1% from 14.4%. The same ratios were found for job expectations.

On the other hand, the Case-Shiller composite index of home prices fell 1.5% in the third quarter from a year ago. The index showed an even further drop of 2% in the third quarter when compared to the previous quarter.

According to Standard & Poor's (S&P) Case-Shiller home price index, home prices are falling faster in the nation's largest cities.

The index dropped 0.6% in September compared to August (some are reporting 0.7%), with 18 of the cities recording monthly price declines. The largest drop was reported in Cleveland, Ohio, which saw prices drop 3% compared to a month earlier. The only two cities where prices increased were Washington DC (thanks mainly to government spending) and Las Vegas (which has been battered in recent reports).

With mortgage refinancing applications up recently and house prices on the rise in recent months, some might believe there is reason to be optimistic about the struggling housing sector. I don't subscribe to this belief. Instead, I look for delinquencies and foreclosures to spike in the slow economic growth, high unemployment quarters that probably lie ahead.

Already, real estate owned (REO) by lenders due to foreclosures -- perhaps the most hated term among bankers -- is climbing. Estimates are that a major share of the 7 million houses that have delinquent mortgages or are in some stage of foreclosure, as well as those yet to come, will be dumped on the market, adding to the already huge excessive inventory glut. Some 4.5 million loans are now in foreclosure or at least 90 days delinquent.

Will home prices keep falling? The answer is yes. But why this is happening? The reason lies in high unemployment and the increased number of foreclosures.

Here are some analysts' views on the market, as reported by CNNMoney:

• Fiserv, a market analytics company, had forecast price gains of 4% in February. Their latest prediction is for a 7.1% drop in prices.

Investors, understandably, have taken a skeptical stance toward the U.S. housing sector. Moreover, given the debacle known as the 2007-2009 bursting of the U.S. housing bubble, it's normal for even typical, prospective home owners to doubt if this once fairly-reliable asset class will return to normal appreciation rates of 4% to 7% per year.

Further, the above begs the question: should the nation and Americans continue to rely on the housing sector as an engine of growth? Or is the nation better-served if tax breaks, such as the longstanding home mortgage interest deduction, are shifted to other sectors/investments?

According to the Standard & Poor's/Case-Shiller 20-city home price index, home prices increased during July, marking the fourth-straight month. During July, the home price index increased 0.6% compared to June and 3.2% from a year earlier. While this is good news, seven of the cities surveyed saw monthly declines, while gains in a number of the cities were weaker than a month earlier.

There is fear that the home-buying boost provided by the government tax credits is wearing off. If this is the case, we could see weak demand cropping up from the housing sector. The fear is that the record number of foreclosures, job concerns and weak demand from buyers are pointing to weaker home sales in the coming months. Nevertheless, the news will be viewed as positive. That is simply the way that many analysts will cling to good news.

Housing steps into the spotlight again this coming week. The release of the National Association of Homebuilders Housing Market Index starts out the week on Monday morning. Then on Tuesday morning, look for housing starts data from August. Release of the July FHFA House Price Index is scheduled for Wednesday. And numbers for existing home sales and for new home sales in August are due out Thursday and Friday, respectively. Overall, the housing market is expected to have continued to lose momentum in August, but less dramatically than in July.

Also on the economic calendar this week: Tuesday's FOMC meeting on interest rates, the Conference Board's Leading Economic Indicators Index for August on Thursday, initial jobless claims for last week, and durable goods orders data for August on Friday. No significant changes from the Fed are anticipated, but the leading economic indicators may rise a bit.

During June, home prices increased for the third-straight month, lending a bit of momentum to the bulls Tuesday morning. The problem is that the downward tide of the market was too much for this news to overcome, but taking this news in conjunction with other news could put a positive spin on the day.

The Standard & Poor's/Case-Shiller home price index posted a 1% increase in June compared to May. Comparing the number to a year ago, the index increased 4.2%. On a quarter-over-quarter basis, the second-quarter numbers were 4.8% better than the first quarter. Of the 20 cities surveyed, 17 saw monthly price increases -- Las Vegas was the only city where prices fell.

A frequent question voiced in dinner party circles in this neck of the woods (the metropolitan New York City area) is, 'How low will home mortgage rates go?'

That question is usually accompanied by, 'Should I refinance now, or wait?' if the inquirer already owns his/her residence.

To the latter, I usually respond with, if you can lower your fixed mortgage rate by 1.50 percentage points (150 basis points in Wall Street terms), and total closing costs can be recovered in 30 months, it usually makes sense to refinance.

The housing market continues to improve, and March was a very good month for new home sales.

New home sales were up by 26.9% during the month, which is the biggest one month increase in 47 years, with home buyers taking advantage of the tax credit that is about to expire.

Home prices fell yet again in November, losing 0.2% month-over-month (on a not seasonally adjusted basis), following a 0.1% drop in October. The Standard & Poor's/Case-Shiller's home price index reported only five out of 20 metro areas with gains, and from November 2008 to November 2009, home prices are off 5.3%. Need a benchmark? It's late 2003: Six years of appreciation have been obliterated by the financial crisis.

The slide worries analysts who wonder if the housing recovery is strong enough to keep moving forward. A stall on the housing side, of course, could push through the rest of the economy, ultimately putting the squeeze on consumer spending (further) and impeding overall growth.