Stocks edge up after Obama extends tax cuts

An extension of tax cuts for all Americans is sending stocks higher.

All three major indexes are rising Monday after President Barack Obama signed a $858 billion package Friday renewing tax cuts for another two years and extending expiring unemployment benefits through next year. The package is expected to boost economic growth, although critics say it could also fuel higher inflation.

At the opening, the Dow Jones industrial average is up 15, or 0.1 percent, to 11,507. The Standard & Poor's 500 index is up 3, or 0.3 percent, to 1,247. The Nasdaq composite index is up 9, or 0.3 percent, to 2,652.

Bond prices are rising, sending yields lower. The yield on the 10-year Treasury note fell to 3.28 percent from 3.33 percent late Friday.

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

NEW YORK (AP) - An extension of tax cuts for all Americans is giving stocks a lift.

All three major indexes are set to rise Monday after President Barack Obama signed a $858 billion package Friday renewing tax cuts for another two years and extending expiring unemployment benefits through next year. The package is expected to boost economic growth, although critics say it will unnecessarily increase the federal deficit and fuel higher inflation.

Ahead of the opening bell, Dow Jones industrial average futures are up 34, or 0.3 percent, to 11,464. S&P 500 futures are up 4.60, or 0.4 percent, to 1,243. Nasdaq 100 futures are up 9.25, or 0.4 percent, to 2,222.50.

"Sometimes it just takes a little bit of positive news, and something that's not negative, to (send) stocks higher," said Todd Salamone, director of trading and vice president of research at Schaeffer's Investment Research.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 3.30 percent from 3.33 percent late Friday. Yields had been on the rise in the last few weeks after investors pulled money out of bonds, expecting the tax-cut plan to help the economy.

In Asia, markets were mostly lower after South Korea's military staged drills from an island just miles from rival North Korea's shores, prompting fears of retaliation. South Korea's benchmark Kospi index closed 0.3 percent lower and Japan's Nikkei 225 index fell 0.9 percent.

U.S. investors largely shrugged off the tensions, however. Instead, they're waiting on several earnings reports due out this week that will provide an update on consumer spending trends.

Darden Restaurants Inc., which operates the Olive Garden and Red Lobster chains, reports its results Monday. Investors want to know if sales at restaurants open at least a year can keep rising. Software company Adobe Systems Inc. also reports its results Monday, providing insights into technology spending by businesses and consumers.

Later in the week, investors will get reports from shoe maker Nike, used car dealership chain CarMax and pharmacy operator Walgreen Co.

In economic news, the Commerce Department releases its final estimate of third-quarter gross domestic product on Wednesday. Economists believe GDP will be revised upward to 2.8 percent from the earlier estimate of 2.5 percent.

The National Association of Realtors also releases data on sales of previously occupied homes for November. That report is expected to show a slight improvement in the housing market.

Still, it's a holiday-shortened week with the markets closed on Friday ahead of the Christmas weekend. That means trading will likely be light.