Dogs understand human pointing gestures as well as two-year-old children, according to two studies.

That's not all.  Due to domestication, dogs appear to be predisposed to read other human visual signals, including head turning and gazing, according to Discovery News.  The studies suggest that dogs may understand us better than chimpanzees.

Check it out:
http://www.msnbc.msn.com/id/31897694/ns/health-pet_health/