Mild opening gain on firm buck, overseas gains

Small-cap stocks are expected to open higher, bolstered by solid earnings from tech bellwether Hewlett-Packard Co. (NYSE:HPQ), a strong U.S. dollar and gains in overseas stock markets. The Russell 2000 (NYSE:IWM) was up about 0.3% overnight, which would suggest an opening near 732. It’s worth noting that stock index derivatives were retreating off the highs moving closer to the opening, so perhaps some hangover from two days of steep losses was still in the air.

HPQ, the largest computer maker on the planet, topped the Street estimate for quarterly earnings and climbed more than 3%, allowing investors to set aside concerns about the credit crisis and troubling economic data — especially on a day in which there are no major economic releases to muddy the water. Speaking of minor economic reports, this morning’s Mortgage Applications Index slipped to the lowest point since 2000 as a dip in mortgage interest rates did not attract renewed purchases or refinancing.

The U.S. dollar was on a roll in Asian and European trading time frames, gaining about 0.3% against the euro and against the yen, which suggests some confidence in the U.S. economy and dollar-tied assets.

A rally in crude oil prices could toss cold water on any morning bounce, however, as crude was up about $1.50 dollars a barrel back near the $116 mark. While a rise in crude could support energy shares, the overall impact tends to be negative for the broad market. Grains markets were also expected to push higher today, which could provide a quick reminder of the recent inflation scares seen on consumer . . .

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