Stock futures rise despite gridlock on debt

By CHIP CUTTER | July 26, 2011 | 8:14 AM EDT

In this July 25, 2011 photo,trader Gregory M. Rowe (left) works on the floor at the New York Stock Exchange in New York. The deadlock over raising the U.S. debt ceiling continued to weigh on stocks and the dollar Tuesday, July 26, after President Barack Obama warned that his country was dangerously close to a default. (AP Photo/Seth Wenig) )

NEW YORK (AP) — U.S. stock futures are rising modestly despite a continuing standoff on how to resolve the nation's debt problems.

Republican and Democratic lawmakers have offered competing proposals to avoid a catastrophic default on the U.S. government's debt. But a resolution still appears a long way off.

If an agreement is not reached by Aug. 2, the U.S. won't have enough cash to pay all its bills. That could cause stocks to plunge.

In corporate news, Ford, UPS and JetBlue are releasing their quarterly earnings results.

Ahead of the opening bell Tuesday, Dow Jones industrial average futures are up 9 points, or 0.1 percent, at 12,559. Standard & Poor's 500 futures are up 2, or 0.2 percent, at 1,336. Nasdaq 100 futures are up 3, or 0.1 percent, at 2,426.