Stocks set to extend run

NEW YORK (CNNMoney.com) -- U.S. stocks were poised to extend gains Wednesday, as earnings optimism continued to boost sentiment.

Dow Jones industrial average, S&P 500 futures and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

Wall Street surged Tuesday after investors took in some better-than-expected quarterly results from Merck (MRK, Fortune 500) and Barclays and commodity prices surged. Strength in overseas markets and a strong rise in New York manufacturing added to the momentum. The blue-chip Dow leaped 170 points, or 1.7%.

Art Hogan, chief market strategist at Jefferies & Co., said that Wall Street is getting a lift as overseas anxiety over Greek debt abates, as that country gets close to a resolution with the European Union.

Going forward, Hogan said the market faces a plethora of pre-market economic data, including industrial production and housing starts. But, he added, the numbers on industrial production outweigh the housing market in terms of importance.

"We don't want a robust housing starts number," said Hogan, prior to the release of the report. "We've got enough of an inventory of houses now. I certainly think that it's important for the economy to have some positive numbers from industrial production."

Economy: The futures showed little reaction to reports on the housing markets.

The National Association of Home Builders reported that housing starts jumped 2.8% in January to an annual rate of 591,000, which was more than expected.

Housing starts were expected to have reached an annual rate of 580,000 units in January, according to a Briefing.com consensus of economist forecasts.

Building permits, a measure of houses yet to be built, fell 4.9% to an annual rate of 691,000 units in January, which was better than expected. The rate of permits was expected to have slipped to 620,000 in January.

The U.S. Bureau of Labor Statistics reported import and export prices for January. Import prices rose 1.4% and export prices rose 0.8%, the government said.

The report on industrial production will come out shortly before the bell. Production is expected to have climbed 0.8% in January, according to a consensus of economist opinion from Briefing.com.

Investors will also look to the minutes from the Federal Reserve's last meeting, which are due out at 2 p.m. ET.

Earnings: Hewlett-Packard (HPQ, Fortune 500) is on tap to report its latest financial results after U.S. markets close.

Companies: Toyota (TM) announced it would tighten controls on safety, including employing new quality control officers worldwide, following its massive recall.

World markets: European shares climbed in midday trading. Stocks in Japan also surged, with the benchmark Nikkei index ending Wednesday's session 2.7% higher.

Cash and bonds: The dollar rose versus the euro, the yen and the British pound. The price rose on the 10-year fell, pushing up the yield to 3.69%.

Gold and oil: The price of gold slipped 30 cents per ounce to $1,119, recovering from earlier lows.

Oil prices continued to advance, driven by market optimism, as they rose 33 cents to $77.36 per barrel. This follows Wednesday's 4% jump in oil prices.