Stocks look to start March with gains

NEW YORK (CNNMoney) -- U.S. stocks were poised to open higher Tuesday, extending gains from the previous session, as concerns about the Libya situation eased.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher ahead of the opening bell. Futures measure current index values against perceived future performance.

Despite a slight step back last week, stocks closed out February on an upbeat note -- posting their third straight month of gains. Overall, all three major indexes were up nearly 3% during the month, and have risen more than 5% since the beginning of the year.

Stocks have been supported this year by a combination of improving economic news and strong corporate earnings. But some traders are concerned that a jump in energy costs could hurt the economy, as the recent turmoil in the Middle East and North Africa boosts oil prices.

But for now, there's a sense that the overseas turmoil isn't as daunting as it was last week, and oil prices might have reached a plateau.

"The markets have had to wrestle with very helpful news on global growth, but very unhelpful news on political developments and oil price movements," said Ken Wattret, economist with BNP Paribas in London.

"The oil prices, having spiked in the initial stages of unrest in Libya, have now gone sideways," Wattret added. "The worry about the consequences of the turmoil in the Middle East spreading has diminished."

Meanwhile, investors are looking ahead to the government's monthly payroll report on Friday, which will reveal how many jobs were created in February.

Economy: The Institute for Supply Management will release its manufacturing index at 10 a.m. ET. It's expected to fall slightly to 60.5, which would still indicate expansion in the sector.

Federal Reserve chairman Ben Bernanke is due to give his semi-annual testimony on monetary policy to the Senate Banking Committee.

Treasury Secretary Tim Geithner is scheduled to testify before the House Financial Services Committee on the administration's plan for reforming America's housing finance market.

Companies: Ford (F, Fortune 500), General Motors (GM), Toyota (TM) and other automakers release their February sales figures starting at around 10:45 a.m. ET.

World markets: European stocks rose in morning trading. Britain's FTSE 100 was flat, the DAX in Germany advanced 0.6% and France's CAC 40 edged higher by 0.3%.

Asian markets ended higher. The Shanghai Composite rose 0.5%, the Hang Seng in Hong Kong added 0.2% and Japan's Nikkei jumped 1.2%.

Currencies and commodities: The dollar fell against the euro and the British pound, but was firm versus the Japanese yen.

Oil for April delivery gained 85 cents to $97.82 a barrel.

Gold futures for April delivery rose $10.60 to $1,420.50 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.45% from 3.43% late Monday.